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.


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.