The UK's coronavirus furlough scheme will finish at the end of October, Chancellor Rishi Sunak confirmed on 29 May.

At the briefing, the chancellor also set out how employers will have to start sharing the cost of the scheme as well as explaining the new rules allowing flexibility to be introduced. Key dates to keep in mind are as follows: 

  • 30th June - the current furlough scheme will be closed to new entrants. If you want to add new employees to the current scheme, you must do so by 10th June.
  • 1st July - 'new more flexible furlough' scheme will be launched allowing you to bring employees back part-time with working hours paid by you, and the remaining hours to be covered by the scheme.
  • 1st August - employers will be required to pay NI and pension contributions, with the government continuing to contribute up to 80%.
  • 1st September - employers will be required to contribute 10% of wages and claim the remaining 70% under the scheme.
  • 1st October - employers will be required to contribute 20% of wages and claim the remaining 60% under the scheme.
  • The furlough scheme will close at the end of October.

From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week. Further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June.

The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June. This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.

If you have any questions or require assistance, please contact us as soon as possible and we will assist you.

About the Author: Jamie Skelding

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