21 July 2021

Furlough Scheme Update

Furlough Scheme

As many of us start to return to work and some kind of normality, unfortunately some businesses are still experiencing the long-term effects of coronavirus.

If you and your business are still affected by COVID-19 and you are currently claiming on the Coronavirus Job Retention Scheme, there are some changes that will apply to your July and August furlough claims.

Previously, you could claim 80% of employees’ wages up to a maximum of £2,500 a month.

For July’s claims you can only claim 70% of employees’ wages up to a maximum of £2187.50 a month but you must still pay your employees up to the 80%.

For example, if your employee earns £1,000 a month and is currently on furlough you would still receive £700 in furlough claims, but you would have to contribute, as the employer, £100 so the employee would still receive £800.

From the 1st August the furlough rate is being reduced again to 60%. Where in July the employer had to contribute 10% you now must contribute 20%. Using the previous example of an employee earning £1,000, in August, you would receive £600 in furlough claims and have to contribute £200 towards your employees’ wages.

If your employees are self-isolating, please see our blog below on this topic

If you need any help and advice on regarding your employees or furlough claims please contact our payroll department on our temporary phone line 01724 500491 or email us at

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