As of 30 June 2020, the application will be closed, and only those companies that have previously used it (for employees included before 10 June 2020) will be able to continue using the scheme.
What does this mean?
It means that the final date for an employer to place an employee on furlough for the first time was 10 June 2020, with the three-week minimum furlough period finishing by 30 June. After this date, it is no longer possible to claim for an employee who was not previously furloughed.
Employers have until 31 July to submit claims covering the period up to 30 June.
From 1 July 2020
The scheme became more flexible, allowing employers to bring previously furloughed employees back to work part-time while still claiming grants for the hours not worked.
From 1 August 2020
Employers must start contributing to the wages of furloughed employees, with their share gradually increasing in September and October.
Key changes summary:
- June / July 2020 – The government pays 80% of wages (up to £2,500 per month) plus employer National Insurance and pension contributions for non-working hours. Employers pay employees for worked hours.
- August 2020 – The government continues to pay 80% (up to £2,500), but employers must cover ER NICs and pension contributions (around 5% of total employment costs).
- September 2020 – The government pays 70% (up to £2,177.50) for non-working hours. Employers pay NICs, pensions, and 10% of wages to maintain the 80% total up to £2,500.
- October 2020 – The government pays 60% (up to £1,875), and employers pay NICs, pensions, and 20% of wages to reach 80% total up to £2,500.
The upper cap will be proportional to the number of hours worked.
This is the final opportunity to furlough an employee if your business has been affected by COVID-19.