As the economy begins to rebound from the pandemic, July marks the beginning of the end of furlough. From 1 July 2021, employers using the Coronavirus Job Retention Scheme will be legally required to contribute to their employees furlough payments to continue receiving the grant.
Government contributions will reduce to 70% of an employees wages up to £2,187.50. Employers will be required to cover the additional 10% of employees wages, as a minimum, up to £312.50. This will allow employees to continue to receive at least 80% of their wages, up to £2,500.
In August, government contributions will again drop to 60%, and stay at this level into September. Employers will be expected to pay 20% of their furloughed employees wages during this time, up to £625. After this point, the furlough scheme is currently planned to end.
This staggered approach is intended to gradually reduce support, allowing businesses time to rebound from the pandemic, and prevent unemployment. However with the delay of ‘freedom day’, many industries feel they may not be ready to have government support reduced, and some have called for the extension of several COVID support schemes.
To find out what financial support is currently available to you and your business, check out the government Support Finder.
If you would like to know more, or want our help in setting up a personalised support and recovery plan, then get in touch today!