Furlough in the UK extended until September

The UK Government today announced a further extension to the Coronavirus Job Retention Scheme. The scheme, which was due to close on 30 April 2021, has now been extended until 30 September 2021.  

 Under the current arrangements of the scheme, employers can apply for the Government to pay 80% of wages up to the cap of £2,500 for any hours not worked by employees. The scheme is open to all employers in the UK, provided they have a UK bank account and started a UK PAYE payroll scheme on or before 30 October 2020. The Employer remains responsible for employer NICs and pension contributions on this amount. 

 As part of the extension, the Government will continue to fund 80% of wages until 30 June 2021 – when the support will be gradually reduced: 

  • July: the Government will contribute 70% of wages up to a maximum of £2,187.50 per month for unworked hours, with the employer having to contribute 10% of wages so that the employee receives 80% of their usual wages for any hours not worked. 
  • August and September: the subsidy will drop to 60% up to a cap of £1,875 per month, with the employer having to top up the additional 20% so that the employee receives 80% of their wages (up to the cap).  
  • October: from October the furlough scheme is scheduled to end entirely. 

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