When does furlough end – and what happens next?

Last updated 23 August 2021.

The Coronavirus Job Retention Scheme, better known as furlough, will end on 30 September 2021. Read on for:

• a reminder of how furlough will work for this final month
• and some information on what to do when the furlough scheme ends.

The story so far

The furlough scheme initially paid 80% of a furloughed employee’s usual wages. The Chancellor, Rishi Sunak, introduced the scheme in March 2020, to protect jobs during the coronavirus restrictions. The government says that the scheme has supported more than 11 million people since then.

The scheme has evolved since more businesses began to reopen. Some employers placed workers on flexible furlough. This meant that previously full-time employees could now work part time, if those were the only hours available. They could then receive furlough payments for the remaining hours in their usual work pattern.

From July 2021, furlough changed so that the government would only pay up to 70% of a furloughed worker’s wages. Employers had to pay at least an additional 10%. In August and September, this changed again: see below.

How furlough will work in September

• The government will pay 60% of wages, up to £1,875 per month, for the hours the employee is furloughed.
• As before, employers must top up their employees’ wages. Employees must receive at least 80% of their wages (up to £2,500) for hours not worked.
• Your employer can claim furlough pay for you for September up until the 14 October 2021. Any amendments must be made by 28 October 2021.

What happens after furlough ends?

• If you’re still on a low income, use a benefit calculator to see if you can claim any additional support.
• If you’re one of our customers on a Debt Management Plan, IVA, Trust Deed or DAS, give us a call. We can carry out a benefits assessment with you. We can also review your budget with you to ensure your debt solution continues to work well for you. You can find details on how to contact us here.
• Some furloughed workers are concerned that they will be made redundant when the furlough scheme ends. If this happens to you, or if you think it might, take a look at our redundancy guide. There you’ll find information about your rights, how a redundancy payment could affect your debt solution, and more.
• If you’re an employer, visit the government’s website for information about government support for your business after furlough ends.

 

You can find out more about furlough on the government’s website. And if you’re a Financial Wellness Group customer concerned about your finances, get in touch with us at any time. We’re here to help.