Furlough Scheme Extension – See the monthly changes

Furlough Scheme Extension

The Government have announced several extensions to the furlough scheme. The latest announcement was in the budget on 3rd March 2021, which extended furlough right through to the end of September 2021.

The furlough scheme is also known as the job retention scheme.

Furlough Scheme Extension Changes

Below is a timeline showing how the Government support changes each month from July 2020 through to September 2021.

July 2020

Furlough Scheme in July 2020

No changes.
The Government pays 80% of wages up to the cap of £2,500.00.
The Government pays Ers NI and Ers Pension contributions.
Cost to Employer approx 0%

July 2020
August 2020

Furlough Scheme in August 2020

The Government pays 80% of wages up to the cap of £2,500.00.
Employers must pay the Ers NI and Ers Pension contributions.
Cost to Employer approx 5%

August 2020
September 2020

Furlough Scheme in September 2020

The Government contribution drops to 70% of wages up to a cap of £2,187.50.
Employers must make up the difference of 10%, this ensures the employee still receives 80%.
Employers must pay the Ers NI and Ers Pension contributions.
Cost to Employer approx 14%

September 2020
October 2020

Furlough Scheme in October 2020

The Government contribution drops again to 60% of wages up to a cap of £1,875.00
Employers must make up the difference of 20%, this ensures the employee still receives 80%.
Employers must pay the Ers NI and Ers Pension contributions.
Cost to Employer approx 23%

October 2020
November 2020

Furlough Scheme in November 2020

Government pays 80% of usual hours not worked up to the cap of £2,500.00
Employers must pay the Ers NI and Ers Pension contributions.
This remains the same until 30th June 2021

November 2020
July 2021

Furlough Scheme in July 2021

Government pays 70% of usual hours not worked up to the cap of £2,187.50
Employers must make up the difference of 10%, this ensures the employee still receives 80%.
Employers must pay the Ers NI and Ers Pension contributions.

July 2021
August 2021

Furlough Scheme in August 2021

The Government pays 60% of usual wages not worked up to a cap of £1,875.00
Employers must make up the difference of 20%, this ensures the employee still receives 80%.
Employers must pay the Ers NI and Ers Pension contributions.

August 2021
September 2021

Furlough Scheme in September 2021

The Government pays 60% of usual wages not worked up to a cap of £1,875.00
Employers must make up the difference of 20%, this ensures the employee still receives 80%.
Employers must pay the Ers NI and Ers Pension contributions.

September 2021
October 2021

Furlough Scheme Ends

The Extended Furlough Scheme is now set to last until the end of September 2021. From October 2021 all Government support is due to end.

October 2021

Employee qualifying dates for furlough

To qualify employees must have been enrolled on the payroll with an RTI submitted by certain dates. The current cutoff date is 30th October 2020. That is to say that to claim a grant in March 2021, they must have been employed prior to the October deadline.

From 1st May 2021 this is extended to include employees who were on a payroll scheme on 2nd March 2021. Again an RTI submission must have been made by this date.

Further Information on Furlough and the extension the Job Retention Scheme

HMRC have announced several changes to the scheme as well as numerous extensions. For full details please see the guidance provided by HMRC.

DISCLAIMER – Please note that the content contained in this article is for general information only and is not a substitute for professional advice – read our full disclaimer

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