Furlough Update – July 1st 2021

Changes to Furlough July 2021

As of July 1st 2021 the government’s furlough scheme which offers support to employees out of work due to Covid is changing.

What does this mean for your wages?

Across the UK many businesses have found themselves forced into having to run at a heavily reduced capacity or close entirely during the pandemic, which is why the government introduced the Coronavirus Job Retention Scheme.

If you are currently furloughed then your employer is keeping you on the payroll system, making payments equivalent to 80% of your salary, while the business has less work than normal during the pandemic.

Employers can currently claim up to 80% of salaries worth up to £2,500 a month under the scheme.

However, from July 1 2021 employers will have to take on more – paying 10% of their furloughed workers’ salaries while the government covers the remaining 70%.

This does not mean that furlough has ended, it is simply a reduction in contribution. From August 1st, the amount employers will pay will rise to 20% until the scheme finally draws to an end in September.

Workers will still receive 80% of their salary.

Will I be notified?

Your employer is responsible for claiming through the Job Retention Scheme and therefore should be the one to notify you of any changes to your salary.

If you are concerned that your employer has not claimed on your behalf, you should speak to your employer. You cannot apply for the scheme yourself.