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Jonathan Greenhalgh Blue Collar, White Collar...

Changes to the Furlough scheme take effect

Status Furlough Stamp (C) Novikov Aleksey Shutterstock 1702380772

New changes to the government's Coronavirus Job Retention Scheme have taken effect today, with the government contributing less to the wages of furloughed employees and employers having to contribute more. Here's more information about the changes:

  • From 1st September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. 
  • Employers will pay employer National Insurance Contributions and pension contributions and top up employees' wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
  • Employers will continue to be able to choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense if they wish.
  • As has been the case since June, employers will have to pay their employees for the hours worked.

What are your thoughts on the changes? How do you think your business or role be affected?