Changes to the Coronavirus Job Retention Scheme (CJRS)

Up until the end of June 2021, employers could claim a grant worth 80% of each employees’ wage costs, up to £2,500 per month for hours not worked. However, as announced in Budget 2021, the size of the grant payable to employers will be reduced as restrictions are eased.

As of 1 July 2021, the Government’s grant will reduce to 70% of furloughed employees’ wage costs for their unworked hours at a cap of £2,187.50. Pay for furloughed employees must remain at a minimum of 80% at a cap of £2,500 which means that the employer must contribute 10% up to £312.50 themselves. Further changes to the scheme will continue into August.

From 1 August 2021, until the scheme ends on 30 September, the Government’s grant will reduce a final time to 60% of furloughed employees’ wages for their unworked hours at a cap of £1,875. With the 80% rule still intact, employers will need to contribute 20% to staff wages up to £625. Therefore, from July through to the end of September, employers will have to cover a portion of the employee’s actual wages, as well as the national insurance and pension contributions.