In his Budget on 3 March 2021, Rishi Sunak announced that the Coronavirus Job Retention Scheme is being extended and changing again, for what is likely to be the last time.

Furlough ends on 30 September

The end date for the furlough scheme has been pushed back from 30 April to 30 September 2021, at which point if all goes to plan the UK will be three months clear of lockdown and back to something much closer to normality.

Employers will contribute more from 1 July

The new extension to the furlough scheme doesn’t come without a cost to employers.  All COVID restrictions are due to be lifted on 21 June, so any businesses using the scheme in July, August or September will need to pay a contribution towards salary as well as continuing to pay employer’s NI and pension contributions.  The minimum 80% of salary received by employees (capped where appropriate) will not change.

The following table sets out the key rates for an employee whose wages aren’t being topped up above 80%:

Furlough Claim Period % Salary received by the employee % Salary recoverable from Govt % Salary paid by employer
1 March to
30 June
80% 80% 0%
1 July to
31 July
80% 70% 10%
1 August to 30 September 80% 60% 20%

Contact us to find out more

If you have any questions about the Coronavirus Job Retention Scheme our expert employment solicitors are here to help.  You may need help with the new furlough calculations, or perhaps you are considering bringing some or all of your staff back from furlough and want to discuss the next steps?  Whatever your question, contact us today to book a free initial consultation with one of our friendly, expert team.

The Backhouse Solicitors Team

Tel: 01245 893400
Email: [email protected]
Visit: 17 Duke Street, Chelmsford, Essex CM1 1JU

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