Changes to the Coronavirus Job Retention Scheme: 1st of July 2021
Check out this useful post on changes to the furlough scheme, written by Samantha from our Litigation team! 😄
As of the beginning of this month, the Coronavirus Job Retention Scheme, or ‘furlough’, underwent the first stage in reducing the Government’s contributions to workers’ pay. The Scheme is set to remain in place until September 2021 to support those affected by the Coronavirus Pandemic.
From 1st July 2021, the Government’s grant was reduced to 70% of furloughed employees’ wage costs for their unworked hours at a cap of £2,187.50. Pay for furloughed employees must remain at a minimum of 80% at a cap of £2,500, which means that employers must contribute 10% of their own money, up to £312.50.
From 1st August 2021 there are further expected changes ahead of the end of the Scheme on 30th September 2021. Government contributions will reduce to 60% of wages, capped at £1,875 per month, for the hours that employees are furloughed. The balance of 20%, up to £625, will have to be paid by the employer.
If you are likely to be impacted by these changes and need professional legal advice, Bradley Haynes Law has a highly qualified team who can assist you.
To start a conversation, please contact us on 01905 900 919 or email holly@bradleyhayneslaw.co.uk
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