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Furlough Scheme

The Coronavirus Job Retention Scheme (CJRS) better known as the 'furlough scheme' was introduced in April 2020 in an attempt to prevent a wave of redundancies following the widespread shutdown of businesses during the initial lockdown. Furlough involves companies keeping staff on payroll who have stopped working because there is no work for them to do and claiming a government grant to cover up to 80% of their wages, capped at £2,500 per month.


An extension of the Coronavirus Job Retention Scheme (CJRS), for all sectors until 30 September 2021.


The furlough scheme will continue to pay up to 80% of employees' usual pay, capped at £2,500 per month. However, the level of support will taper down in the final stages of the CJRS as follows:

  • Until June 2021 - The scheme will remain unchanged till June, the government will continue to pay the full 80%.

  • July 2021 - Employers will contribute 10% of that 80%, government contributing 70%.

  • August-September 2021 - Employers will contribute 20%, with the government contributing 60%.

  • Employers will continue to pay all employers' national insurance and pension contributions.

Disclaimer: The information in this mini-guides is based on publicly available information. While we take every effort to keep the guides up-to-date, you should not solely rely on them for your business decisions. Should you have any questions, please feel free to reach us at

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