In the budget, the Chancellor Rishi Sunak announced an extension of the
Coronavirus Job Retention Scheme (furlough) until 30 September 2021, with
employer contributions gradually increasing from 1 July.
The furlough scheme will work like this:
· Until the end of June, the Government will continue to pay up to 80% of
employees’ usual pay, capped at £2,500 per month.
· In July 2021, employers will contribute 10%, with the Government
· In August and September 2021, employers will contribute 20%, with the
Government contributing 60%.
Employers will continue to pay all employers’ National Insurance and
Flexible furlough will continue to be an option, so employees will be able
to work part-time and receive a furlough grant for their unworked hours.
The following documents have been updated in accordance with the above
Employers are able to claim for new joiners who started between 31 October
2020 and 2 March 2021 but must wait until May before furloughing them.
Employers cannot claim for any new joiner who is recruited on or after 3
Job Retention Bonus and Job Support Scheme
In respect of the Job Retention Bonus and Job Support Scheme, these look to
have been postponed indefinitely and look unlikely to be introduced at all.
The contents of this Newsletter are for reference purposes only and do not constitute
legal advice. Independent legal advice should be sought in relation to any specific