What are the changes to the furlough Scheme in July?

What is the current scheme?

So at the moment until the 30th June 2021 the scheme is the following:

• Employers can continue to claim 80% of worker’s pay.
• Employers need to pay the NI, Tax and pension contributions of the employees.
• Employers can use flexible furlough to claim for the hours unworked at the end of the month and pay full pay for those hours that were worked.

What is changing from 1st July 2021?

From the first of July, it starts the 3 months count down to the end of furlough.  As with last year there will be slight increases

• From 1st July – 31st July Employers must contribute 10% of workers pay on furlough and the Government will pay 70%.
• Employers need to pay the NI, Tax and pension contributions of the employees.
• Employers can use flexible furlough to claim for the hours unworked at the end of the month and pay full pay for those hours that were worked.

What happens after the 31st of July 2021?

From the 1st August until the 30th September the following will apply.

• From 1st August 2021 to 30th September 2021 Employers must contribute 10% of workers pay on furlough and the Government will pay 70%.
• Employers need to pay the NI, Tax and pension contributions of the employees.
• Employers can use flexible furlough to claim for the hours unworked at the end of the month and pay full pay for those hours that were worked.

The furlough scheme is currently expected to close from the 1st of October 2021.

Are you concerned about Furlough Ending?

If you need some support to review your staffing and the impact of the furlough then please do get in touch.

We also have the Back to Work Toolkit available which not only helps you to get back in the workplace but also has a lot of information about how to review your structures and what you need to do.