Flexible furlough

MILS members will have noted the recent changes in furlough and the amount that can be claimed towards employees’ wages.

According to Government information 11.6 million jobs have been supported since the scheme began. The priority now is not only to support jobs but to incentivise employers to bring back staff as the economy returns to normal.  The Government has produced the table below to summarise the changes

JulyAugustSeptember
Government contribution: wages for hours not worked70% up to £2,187.5060% up to £1,87560% up to £1,875
Employer contribution: employer National Insurance contributions and pension contributionsYesYesYes
Employer contribution wages for hours not worked10% up to £312.5020% up to £62520% up to £625
For hours not worked employee receives80% up to £2,500 per month80% up to £2,500 per month80% up to £2,500 per month

 
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.

Further guidance can be found at

https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme

The scheme will end, 30 September 2021.

In Conclusion

Whilst the current variant of Coronavirus has already amended the plans out of lockdown, the Government is not currently expecting any further changes. However, it is important to note that the situation remains fluid.  
The information in this note is based on updated information released by the Government as at 02 July 2021.