Coronavirus Job Retention Scheme: August Update

Coronavirus Job Retention Scheme: August Update

As part of the UK Government’s recent review of the job retention scheme and other support for businesses battling against the COVID-19 lockdown restrictions, there are a few key changes being implemented to the scheme.

Furlough Rates 

The amount that can be claimed by employers will be the biggest change in the scheme for this month. As of August 2021, the Government will lower their contribution from the previous 70% rate which featured in July, to 60% of wages for hours not worked up to £1,875, which means employers will now be required to contribute 20% of their wage to make it up to the required 80%.

As with previous months throughout this most recent iteration of the job retention scheme, national insurance, and pension contributions will continue to be covered by the employer and will not be available to claim.

For the remainder of August and September, this updated Government contribution figure will maintain that 60% rate up to a maximum of £1,875 – where the scheme is then due to end as more and more coronavirus restrictions are lifted and businesses are given more freedom to return to operation.

Employers will continue to have the freedom to top up their employee’s wages to the full 100% at their own discretion as has been the case since the beginning of the scheme.

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