Employers start contributing to furlough payments

Jul 7, 2021 | Coronavirus Updates

The furlough scheme has started to wind down as employers start shouldering more of the cost of furloughed employees’ wages.

With around 1.5 million workers still on furlough, the change will affect thousands of employers across the UK.

Staff will continue to receive 80% of their wages, but employers now have to contribute 10% while the Government will continue to pay the other 70%.

From 1 August, employer contributions will rise to 20% while the Government picks up the tab for 60% before the scheme ends on 30 September 2021.

Not all welcome the end to furlough, with Steve Turner, assistant general secretary of trade union Unite, warning its scaling back would cause “autumn misery and unemployment for millions”.

Julian Jessop, economics fellow at the free market think tank the Institute of Economic Affairs dismisses such claims and argues that employment will actually pick up after a furlough which he thinks is “holding back the recovery” of UK businesses.

He added:

“With most of the economy open again, people should be encouraged to find new jobs, instead of being locked into their old ones”.

Talk to us about the furlough scheme.

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