RMI members will have noted the recent changes in furlough and the amount that can be claimed towards employees’ wages.
According to Government information 11.6 million jobs have been supported since the scheme began. The priority now is not only to support jobs but to incentivise employers to bring back staff as the economy returns to normal. The Government has produced the table below to summarise the changes
| July | August | September | |
| Government contribution: wages for hours not worked | 70% up to £2,187.50 | 60% up to £1,875 | 60% up to £1,875 |
| Employer contribution: employer National Insurance contributions and pension contributions | Yes | Yes | Yes |
| Employer contribution wages for hours not worked | 10% up to £312.50 | 20% up to £625 | 20% up to £625 |
| For hours not worked employee receives | 80% up to £2,500 per month | 80% up to £2,500 per month | 80% up to £2,500 per month |
You can continue to choose to top up your employees’ wages above the 80% total and £2,500 cap for the hours not worked at your own expense.
Further guidance can be found at
The scheme will end, 30 September 2021.
In Conclusion
Whilst the current variant ofCoronavirus has already amended the plans out of lockdown, the Government is not currently expecting any further changes. However, it is important to note that the situation remains fluid.
The information in this note is based on updated information released by the Government as at 02 July 2021.
Solicitor
Motor Industry Legal Services
Motor Industry Legal Services (MILS Solicitors) provides fully comprehensive legal advice and representation to UK motor retailers for one annual fee. It is the only law firm in the UK which specialises in motor law and motor trade law. MILS currently advises over 1,000 individual businesses within the sector as well as the Retail Motor Industry Federation (RMI) and its members.
