From today, employers will be obliged to contribute towards the wages of furloughed employees’ wages again, as they did in the summer of 2020.
For the month of July 2021, the Government will contribute 70% of an eligible worker’s wages, down from 80% in recent months and capped at £2,187.50, The employer will be required to top wages up by 10% so that the employee still continues to receive 80% of their wages. The monthly limit of £2,500 will continue to apply.
For August and September 2021 the Government contribution will reduce further to 60% of wages, with the employer paying 20% until the current proposed end of the furlough scheme on 30 September 2021.
The Government hopes that, as the coronavirus restrictions are due to end imminently, more furloughed workers can return to work their normal hours either before the end of the scheme, or on 1 October 2021.