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The wind down of the Furlough scheme

The wind down of the Furlough scheme

From 1 July 2021, the government grant will be reduced to 70% contribution of wages for hours not worked. The employer will be responsible in contributing towards the cost of their furloughed employees’ wages for hours not worked of 10% up to £312.50, plus employer National Insurance Contributions (NICs) and pension contributions on this amount.

From 1 August 2021 to 30 September 2021, the government grant will be reduced to 60% contribution of wages for hours not worked. The employer will be responsible in contributing towards the cost of their furloughed employees’ wages for hours not worked of 20% up to £625, plus employer National Insurance Contributions (NICs) and pension contributions on this amount.

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

There have been no further extensions to the furlough scheme beyond 30 September 2021, which means there will be no grant available for employers and the scheme will come to an end.

VIsit the gov.uk website for more information. 

What should I do next as an employer?

If you are considering restructuring or want to discuss your options, why not contact Sean Lovett, our Lead HR Advisor.

 



First Published 1 July 2021
Last Updated 1 July 2021

1 July 2021
First published.

 

Find out more about Sean Lovett

Sean Lovett

Sean Lovett

Sean is our Lead HR Advisor in our HR team

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