Furlough scheme – tapering begins on 1 July 2021

Furlough scheme – tapering begins on 1 July 2021


  • Date: Tuesday 29th June 2021
  • PDF: Download

From 1 July 2021 the government furlough scheme will begin to taper, and the government will no longer contribute 80% of employee wages up to £2,500. Instead the contribution will reduce to 70% or up to £2,187.50 of employee wages. This means that employers who still have employees on furlough will need to contribute 10% of employee wages or up to £312.50 in July.

Thereafter for August and September the government contribution to employee wages reduces to 60%. As a result, for those final two months of the scheme employers need to contribute 20% of employee wages or up to £625 per month.

Through the tapering period from the start of July to the end of September, furloughed employees must continue to receive 80% of their wages or up to £2,500 per month.

The treasury has also confirmed that there are no plans to extend furlough despite the delay to the unlocking of Covid-19 restrictions announced by the Prime Minister on 14 June 2021.

If you have any queries about the changes to the scheme, then please do not hesitate to contact your HR adviser.

Source: Gavin Parrott


Bookmark and Share

Return to listings