The furlough scheme is changing and tomorrow, 10th June 2020.

From the 1st July 2020, if an employee or director hasn’t been furloughed under the current scheme i.e. furloughed for 3 full consecutive weeks, you will not be able to make a furlough claim for that employee or director under the revised furlough scheme from 1st July 2020 onwards.

This means that the final date that you can furlough an employee for the first time will be 10‌‌ June for the current three-week furlough period to be completed by 30‌‌ June. Employers will have until 31‌‌ July to make any claims in respect of the period to 30‌‌ June.

This means that the last day an employee or director can start their first 3 week furlough period, and remain eligible under the new scheme is tomorrow 10th June. 

If you are using the furlough scheme, please see below of how the furlough scheme is changing.

DateGovernment Funded% Employer ContributionPension FundedEmployers NICEmployee Return to Work Basis
01 June 202080%Gov FundedGov FundedGov FundedNone
01 July 202080%Gov FundedGov Funded + EmployerGov Funded + EmployerPart time
01 August 202080%Gov FundedEmployerEmployerPart time
01 September 202070%10% Employer + 60% Gov FundedEmployerEmployerPart time
01 October 202060%20% Employer + 50% Gov FundedEmployerEmployerPart time

It’s important to note that the scheme will close to new entrants from 30‌‌ June.

Detailed guidance on the revised furlough scheme is due to be published this Friday 12th June.

As you can see from the above table, the government grant provided through the job retention scheme will be slowly reduced as from August 2020.

  • In June and July, the government will pay 80% of wages up to a cap of £2,500 as well as Employer National Insurance and pension contributions ONLY for the hours the employee doesn’t work – employers will have to pay employees for the hours they work.
  • In August, the government will continue to pay 80% of wages up to a cap of £2,500 but employers will now have to start paying Employer National Insurance and pension contributions.
  • In September, the government contribution now reduces to 70% of wages up to a cap of £2,187.50 for the hours the employee does not work – employers will pay Employers National Insurance, pension contributions and 10% of wages to make up to 80% of the total up to a cap of £2,500
  • In October, the government contribution will reduce further to 60% of wages up to a cap of £1,875 for the hours the employee does not work – employers will pay Employer National Insurance, pension contributions and 20% of wages to make up to 80% of the total up to a cap of £2,500
  • The cap on the furlough grant will be proportional to the hours not worked.

If you have any queries, please get in touch. 

In the meantime, stay safe and well.

Further guidance can be found:

Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme

Claim for wages through the Coronavirus Job Retention Scheme

Holiday entitlement and pay during coronavirus (COVID-19)

If you need any further support please see what services we can offer to help you.

Written by: Jenny Neale

J A Neale

9th June 2020