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Furlough update July 2021

People busy working and talking in an office

What’s happening as the furlough scheme starts to wind down? 

The UK Government has begun to reduce the amount of money it contributes to the furlough scheme, designed to support businesses throughout the coronavirus pandemic.

From 1 July 2021 the government dropped the amount it contributed to a furloughed worker’s pay from 80 per cent to 70 per cent. This means that employers now have to contribute 10 per cent of furloughed worker’s pay for the first time.

From 1 August, the government will pay 60 per cent of a furloughed employee’s wages (up to £1,875).

The government has spent £66bn on the Coronavirus Job Retention Scheme, as furlough is officially known, and it has supported 11.6 million jobs since March 2020.

The prime minister has ruled out extending the furlough scheme beyond September.

Get more detail on the changes to furlough on gov.uk