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Tapering-off of furlough support continues

03 September 2020

Employers with employees still on furlough, or flexible furlough, will need to contribute a higher proportion of employment costs from 1 September.
As previously announced by the Chancellor of the Exchequer, from this date the UK Government will continue to provide a furlough grant of 70% of the employee’s usual salary or wage, up to the value of £2187.50 per month, with the employer making up the additional 10%, up to £312.50 per month.
This 10% share of pay is on top of the cost of pension and employer national contributions, which employers have been responsible for since 1 August. A further 10% (taking the employer share up to 20%) will become payable from 1 October, when the Government grant reduces again to 60%, before the furlough grant system ends completely on 31 October.
Employers looking to move employees off furlough have a range of options open to them, even if a transition immediately into full-time work is not feasible. ECA members can find further information about these options in the Employment and Skills section of our Engineering Services Recovery webpage, on our Loan Labour landing page, or by contacting the ECA Employee Relations helpline (E: T: 020 7313 4800). An ECA webinar recorded last month, and entitled ‘Options for Retaining Current Employees and Future Recruitment’, is available from our Youtube channel here.

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