Further to our previous messages, we remind you that the level of the grant changes from 1 August 2020. The Government will still fund 80% of wages up to a cap of £2,500 for the hours an employee is on furlough but the employer will have to pay the national insurance and pension contributions for hours not worked as well as all costs for any hours worked under the flexible furlough scheme.
Further changes will be effective for September and October claims. Below is a summary of the grants to cover the costs of furlough to the end of the scheme on 31 October 2020:
These changes should be factored into any decisions regarding the use of flexible furlough and decisions to bring employees back to work, as well as implications for holiday entitlement and timing of any redundancy decisions.
We are here to help so please contact us if you wish to discuss any of the above.