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Keeping up to date

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Furlough ending 30 September

Posted on: July 26th, 2021 by Ginny Hallam

The furlough scheme is due to close at the end of September 2021. From 1 August employers will be required to make a greater contribution to furloughed employees’ wages.

End to furlough – the scheme is due to end on 30 September 2021. The latest government figures show that around 2.3 million employees are still being furloughed (compared to the 8.8 million peak in May 2020).

Furlough contributions – from 1 August to 30 September, the government will contribute 60% of wages up to £1,875 and you will need to contribute the remaining 20% up to £625 when employees are furloughed (along with NICs and pension contributions).

Top up – you can still decide to top up employees’ wages beyond the 80% total while furloughed.

Notice pay – don’t forget that you cannot use furlough to cover notice pay.

 

This update is accurate on the date it was sent (26 July 2021), but may be subject to change which may, or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.