Changes to the Coronavirus Job Retention (Furlough) Scheme from August 2021

From 1 August 2021, the level of furlough grant will be reduced and employers will be asked to contribute 20% towards the cost of furloughed employees’ wages.

The Coronavirus Job Retention Scheme (CJRS), commonly known as the ‘furlough scheme’, was introduced in the spring of 2020 to help employers keep their staff onboard during lockdown.

The government has been paying 80% of the wages of people who couldn’t work, or whose employers could no longer afford to pay them – up to a monthly limit of £2,500.

This is now changing:

– From 1 August, the government will pay 60% of furloughed workers’ salaries, and employers will pay 20%

– The same split will take place in September

At the end of September 2021, CJRS will wind down and will no longer be available.

Find out more about the furlough scheme on gov.uk here.