Furlough Changes And Employer Costs

Latest Furlough Update

Author: Kay Augustus, LHP Payroll Manager

Claim for wages through the CJRS Coronavirus Job Retention Scheme.

Just a quick reminder of where we are with furlough and what to expect for the rest of 2021 as we know it. It’s particularly relevant today with the new variant putting a four-week pause on restrictions.

From 1st July 2021 the level of Coronavirus Job Retention Scheme (CRJS) grant will reduce from 80% to 70% (or up to £2,187.50). Employees are still entitled to receive the minimum 80% of their pay, therefore employers will be required to contribute the additional 10%.

Bringing people back to work slowly

From 1st August through to September 2021, we will see a further reduction of 10%, meaning the employer will need to contribute an additional 20% for the two months until the scheme closes at the end of September. The tapering off of the scheme is designed to bring furloughed employees back to work slowly before full restrictions are lifted.

The cost of furlough to your business

Many employers are under the illusion that furlough isn’t costing them anything. However, during their time on furlough, staff have been able to continue to accrue holidays, in most cases employers are also paying employer NI, pension contributions and from July they will fund the gap, to ensure furloughed employees are paid up to the minimum 80%.

As always with the CJRS, employers can continue to make furloughed employees pay up to their normal 100%.

For further information visit the pages.

Let’s Talk

For help with any of this, drop us a line on the Let’s Talk page and a member of our team will be in touch. The same goes for your Payroll needs and other business finance advice.

We have a dedicated team of payroll professionals here at LHP and we are keen to work with you. We can even take the hassles away from you and run a fully outsourced service for you.

Our team is based across South Wales, with offices in Carmarthen, Haverfordwest, Lampeter, Tenby and Cross Hands near Swansea. We have a wealth of experience and are at the forefront of cloud accounting technology in Wales today.

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