Date of Last Update: 04/10/2021
You can find the latest furlough scheme updates here:
4 October 2021 – The end of the furlough scheme
As the furlough scheme came to an end on 30 September 2021, so did the ability to reclaim Statutory Sick Pay (SSP) for absences related to Coronavirus. From 1st October, SSP returned to the default position, meaning you once again need to fund SSP for your employees. For any Coronavirus absences, SSP is payable from day 1, other sickness absences are still payable from day 4 of sickness.
15 June 2021
Remember, from the 1st July 2021, the level of grant will be reduced and Employers will be asked to contribute towards the cost of furloughed employees’ wages. To be eligible for the grant, the employer must continue to pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.
However, from the 1st July, the Government contributions will start to reduce for the remaining three months of the scheme resulting in employer contributions that will increase by 10% each month for July, August and September. This is explained below:
|Government contribution: wages for hours not worked||80% up to £2,500||80% up to £2,500||70% up to £2,187.50||60% up to £1,875||60% up to £1,875|
|Employer contribution: employer National Insurance contributions and pension contributions||Yes||Yes||Yes||Yes||Yes|
|Employer contribution wages for hours not worked||No||No||10% up to £312.50||20% up to £625||20% up to £625|
|For hours not worked employee receives||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month|
Employers can continue to choose to top up their employees’ wages above the 80% total and £2,500 cap for the hours not worked at their own expense. When calculating the pay for furlough purposes, remember to use normal pay, not basic pay. Normal pay includes overtime, commission, allowances and regular bonuses that normally make up the workers pay along with the basic entitlement.
8 April 2021
For periods of Furlough starting on or after 1 May 2021, the eligibility dates are changing. You can only claim for employees who were employed on or before 2 March 2021.
The Furlough contributions that businesses are required to make are increasing from July onwards.
8 January 2021
HMRC has updated its guidance to state that employers can furlough employees whose health has been affected by COVID-19 or any other conditions, including if they are unable to work from home, or working reduced hours, because they:
- are clinically extremely vulnerable, or at the highest risk of severe illness from coronavirus and following public health guidance
- have caring responsibilities resulting from COVID-19, such as caring for children who are at home as a result of school and childcare facilities closing, or caring for a vulnerable individual in their household. This resolves the confusion in whether parents who stay at home to look after school-age children are eligible for furlough. They are.
17 December 2020
The Coronavirus Job Retention Scheme has been extended until 30 April 2021. The government has announced that the furlough scheme will be extended until the end of April 2021 with the government continuing to contribute 80% towards wages – giving businesses and employees across the UK certainty into the New Year. Budget will set out the next phase of support more than 45 days before the new end date of the scheme.