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How is furlough changing on 1 July and when does it end?

The Coronavirus Job Retention Scheme has been extended until 30 September 2021.

From 1 July 2021, the government will pay 70% of wages up to a maximum cap of £2187.50 for the hours the employee is on furlough.

Employers will top up employees’ wages to make sure they receive 80% of wages (up to £2,500) in total for the hours the employee is on furlough. The caps are proportional to the hours not worked.

With parts of the economy still limited by the virus, some firms are calling for an extension to the scheme.

Economists say the uncertainty facing many businesses, and the reduction in government support, will lead some companies to lay-off furloughed workers.

Over the next three months firms will have to shoulder more of the costs of the scheme as the government starts to wind down the scheme. Staff will continue to receive 80% of their wages, but employers will pay part of that for the first time.

Sources: GOV.UK, BBC.CO.UK


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