Furlough changes | What does HR need to know about the CJRS from today?

From today, July 1, the Government has confirmed that as part of England’s roadmap out of lockdown, companies will have to take on more of the costs relating to furloughed workers.

Currently, 1.5million workers are still enrolled in the Government’s Coronavirus Job Retention Scheme (CJRS), according to reports from the BBC. Under the new rules, workers will continue to receive 80% of their wages, yet employers must be required to pay a part of this.

From today, employers must pay ten per cent of their furloughed workers' usual wage, while the Government will continue to pay the additional 70%. This is set to rise to 20% from the beginning of August.

The Institute for Fiscal Studies (IFS) stated that the additional cost for an employer maintaining a team member on the furlough scheme will rise from £155 per month, to £322 in July and then £489 in August and September.