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The furlough scheme – what’s changing now?

The Furlough Scheme – What’s Changing Now?

Now that we’re in August, the last planned changes to the Coronavirus Job Retention Scheme (CJRS, or furlough, or the F-word as we’ve all come to know it), will take effect.

The furlough scheme has been a much-needed lifeline for many businesses throughout the course of the pandemic; however now the government is encouraging businesses to open up and start operating the ‘new normal’, now the scheme is winding up.

The changes won’t affect the amount employees receive for the hours they are furloughed, which continues at 80% of their wages, up to £2,500. So what do you need to know? We’ve answered some key questions here, get in touch if there’s anything you’re wondering about that we haven’t covered.

When do these changes take effect?

This final phase of changes is effective from 1st August 2021.

How are Government furlough contributions changing?

The Government’s contribution is reducing, to 60% of wages (up to £1,875 per month) for the hours that employees are furloughed.

What do I need to contribute as an employer?

The balance of 20% (up to £625) plus don’t forget employer National Insurance contributions (ER NIC) and pension contributions for the hours the employee is on furlough.

When does the furlough scheme end?

This is the last stage of the winding down of the CJRS and it’s due to end completely on 30th September 2021.

HR Support for businesses

With the end of the scheme on the horizon, many employers will need to start right-sizing their business for the market they’re now operating in, and unfortunately that, for many, will mean unavoidable redundancies.

Having an HR and employment law expert to guide you through what is a notoriously tricky process, will ensure headaches are avoided for business owners and leaders. The last thing any employer wants is a tribunal claim landing on their desk, so getting the planning right will stand you in very good stead.

Read more on how we support clients through redundancy processes.

If changes to the furlough scheme and the impact they might have on your organisation are on your mind, get in touch for expert HR support with all things COVID-19.

Furlough advice