The furlough scheme, which was previously due to end at the end of April 2021, was recently extended up until the end of September 2021. However, there are some changes taking place from July 2021 which you should be aware of.
Up until the end of June, the government will continue to pay 80% of the employees’ usual wages for the hours not worked.
For periods in July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875. Employers will need to still top up to 80% of employees’ usual wages or up to the cap of £2500 until the furlough scheme ends.
The below table outlines the monthly changes up to the end of September 2021: –
| Period | Furlough Claim | Furough Cap | Employer Top Up |
| Up to end of June 21 | 80% usual wages | £2,500 | 0% |
| July 2021 | 70% usual wages | £2,187.50 | 10% OR up to £2500 |
| August 2021 | 60% usual wages | £1,875 | 20% OR up to £2500 |
| September 2021 | 60% usual wages | £1,875 | 20% OR up to £2500 |
Eligibility: for periods from 1 May 2021 onwards, employers will be able to claim for eligible employees who were on employers’ PAYE payrolls and submitted to HMRC between 20th March 2020 and 2 March 2021.
