June 17, 2021
Authored by: Mark Kaye and Rebecca Harding-Hill
In our recent blog, we highlighted the UK government’s announcement on 14 June 2021 in relation to the likely four week delay in triggering stage 4 of the lockdown roadmap. This announcement was not, however, accompanied by a further extension of the Coronavirus Job Retention Scheme (“CJRS”). On the assumption that there will not be an extension, the CJRS will cease on 30 September 2021.
Until 30 June 2021, the government furlough grant will continue to pay 80% of wages for hours not worked, capped at £2,500 per month. Employers will be liable for employer National Insurance contributions and employer pension contributions only. However, things are about to change.
What do employers need to consider?
With effect from 1 July 2021 until the cessation of the CJRS on 30 September 2021, the following changes will be made:
- From 1 July 2021: employers must contribute 10% towards the pay of furloughed employees, with the government grant reduced to 70%. The 80% furlough pay will continue to be capped at £2,500 per month.
- From 1 August 2021: employers must contribute 20% towards the pay of furloughed employees, with the government grant reduced to 60%. The 80% furlough pay will continue to