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Updates on the Furlough Scheme

Due to the Covid-19 outbreak, the government brought out the furlough scheme to help employers and employees financially whilst their respective income was suffering due to the outbreak. This scheme has been and is still in force as I write this.

However, from the 1st of July the government started to implement new structures in place to gradually withdraw the furlough scheme in order to encourage employers to bring their workforce back to work slowly. In July employee was able to agree with their employers to be put on “flexible furlough” meaning they can work some of their usual hours and be on furlough for the hours they don’t work.

However, as time progresses the amount of government support for furlough will decrease starting with this month. From the beginning of this month, employers are liable to pay the National Insurance and Pension contributions for their furloughed staff.

As of September 2020, the government support will drop to 70% and the employer will need to make up the 10% to ensure the employee gets 80% of their salary (up to £2500).

From October, the government support will drop further to 60% and the employers support will increase to 20% to ensure the employee gets 80% of their salary (up to £2500).

From the end of October 2020, the furlough scheme support from the government will end and employees will be expected to be back at work in their normal capacity.

For further help and advice relating to the furlough scheme and how we can help you please contact us on or call us on 0191 5111217.


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