Changes to furlough scheme coming into force in July

Changes to the furlough scheme will be brought in this week – with more than four million people remaining dependent on it.

What’s changing?

From Thursday 1st July, the Coronavirus Job Retention Scheme will cover 70% of wages not worked, up to a maximum of £2,187.50.

Those currently on furlough are not set to see a reduction in their pay however, as the government is still keeping the 80% threshold in place. Instead, employers will have to top up the remaining 10% of their staffs’ wages up to £312.50 to keep receiving the funding.

How long will it last?

The next change is set to take place in August, when the government contribution to the scheme will drop to 60%, meaning the contribution that bosses will have to make will rise to 20%. That will continue into September when the scheme is set to come to an end.

We are still awaiting confirmation from government on whether the furlough scheme will be extended due to the four-week delay to “freedom day” on 21st June, leaving many businesses still unable to operate at full capacity.

What other changes are coming into effect?

  • From 1st July, business rate exemptions for retailers and hospitality firms will end.
  • The amount of wage costs employers need to contribute for furloughed staff through national insurance and pension will rise from 5% to 14%.
  • Firms will have to start paying deferred VAT bills, while repayments on more than £45bn in emergency bounce-back loans will soon be due.

What support am I eligible for?

There are various support measures in place for your business if you can demonstrate that your income has been severely impacted by Covid-19. To check the eligibility in your area, click on the links below:




Northern Ireland

What if I have further questions?

If you can’t find the answers you’re looking for on government websites or via our funding & financial support page, please don’t hesitate to give your account manager a call to chat through the options available to you. We are here to support you through this difficult time and beyond and no question is too silly or small. Pick up the phone and speak to a member of our team on 0300 124 6866.

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