Furlough Scheme Changing

First published on 03 June 2021 by Alastair
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With restrictions continuing to ease across the UK, the support available under the Coronavirus Job Retention Scheme (commonly known as the furlough scheme) will start to reduce from July 2021.  Going forward, employers will have to make a contribution towards the employee’s salary (in increasing amounts), before the scheme stops entirely at the end of September 2021.  These are similar to those that were introduced for a few months last year.

The new levels of support available under the scheme will be as follows:





Government contribution for hours not worked


70% up to £2,187.50

60% up to £1,875

60% up to £1,875

Employer contribution for hours not worked


10% up to £312.50

20% up to £625

20% up to £625


Employers will also still be required to pay employer NIC and pension contributions for furloughed employees.

The criteria for who can claim under the scheme remain unchanged, but if you are unsure, more details can be found on the government website (https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme).

Chris Leslie, M&S Accountancy and Taxation 

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