Level of Government support for Furlough scheme to reduce
From 1 July the level of government support for the furlough scheme will reduce. The government contribution will fall to 70%, subject to a cap of £2,187.50 per month. The employer will now be required to make a contribution of at least 10% (up to £312.50) to maintain the 80% employees were previously entitled to. Employers can continue to voluntarily top up wages above the 80% minimum, or above the cap, if they wish.
From 1 August the government contribution will fall to 60%, meaning the employer will need to pay 20%. This will remain in place until the end of September when the scheme is set to close.
In June, the Chancellor rejected calls to extend the furlough scheme following the delay of the lifting of restrictions from 21 June to 19 July.