Changes to the Coronavirus Job Retention Scheme – from 1st July 2021
It has been two weeks since the furlough scheme began to wind down on a tapered scale. Throughout the pandemic, the government scheme has supported employers and employees, by paying up to 80% of salaries for those that were unable to work due to the effects of the pandemic.
From 1 July 2021, the government will now pay 70% of salaries and employers will pay 10% and in August and September, the government will pay 60% and employers will pay 20%.
It is hoped that by making furlough more expensive for employers, it might encourage them to bring workers back full-time – if they can.
But as we know, many industries are still experiencing lower than average trading levels and businesses may not have enough work to justify bringing workers back.
They will then have to consider whether or not they can afford the employer contributions for the next few months – at a time when cashflow is potentially already restricted.
If this causes additional difficulties with cashflow, it could have longer term effects on the business and now may be the time to seek professional advice.
Beesley’s are here to help – for a confidential discussion, do not hesitate to contact us:
North office: 01625 544 795
South office: 01442 233 123
East Mids office: 01246 224 399