Changes to the Coronavirus Job Retention Scheme from July 2021

From 1 July 2021, the level of furlough grant will be reduced and employers will be asked to contribute 10% towards the cost of furloughed employees’ wages.

The Coronavirus Job Retention Scheme (CJRS), commonly known as the ‘furlough scheme’, was introduced in the spring of 2020 to help employers keep their staff onboard during lockdown.

The government has been paying 80% of the wages of people who couldn’t work, or whose employers could no longer afford to pay them – up to a monthly limit of £2,500.

This is now changing:

– From 1 July, the government will pay 70% of furloughed workers’ salaries, and employers will pay 10%

– In August and September, the government’s contribution will fall to 60% and employers will pay 20%

At the end of September 2021, CJRS will wind down and will no longer be available.

As announced earlier this week, from 19th July 2021 all remaining Covid-19 restrictions should be lifted, and businesses that are currently still closed, such as nightclubs, can reopen, along with all businesses that are currently working at a reduced capacity.

Find out more about the furlough scheme on gov.uk here.