24 March 2021

Changes to the furlough scheme from July 2021

As you may already know, the Coronavirus Job Retention Scheme has been extended until 30 September 2021.

While the level of grant available to employers under the furlough scheme will stay the same until 30 June 2021, from 1 July 2021 the level of grant will be reduced, and you will be asked to contribute towards the cost of your furloughed employees’ wages.

To be eligible for the grant you must continue to pay your furloughed employees 80% of their wages, up to a cap of £2,500 per month, for the time they spend on furlough.

The table below shows the level of government contribution available in the coming months, the required employer contribution and the amount that the employee receives per month where the employee is furloughed 100% of the time.

Wage caps are proportional to the hours not worked.

Source: gov.uk

You can continue to choose to top up your employees’ wages above the 80% total and £2,500 cap for the hours not worked at your own expense.

It is also pertinent to note that both the proposed Job Support Scheme and the Job Retention Bonus have been scrapped, but the government says it will redeploy a revised incentive at an appropriate time.

If you have any concerns or queries relating to this or any other business matter, please email info@bmconnect.co.uk or contact your usual BM Connect specialist for advice and assistance.

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