How did the Coronavirus Job Retention Scheme operate in the extended period up to 30 September 2021?

The Coronavirus Job Retention Scheme remained open until 30 September 2021, having been extended beyond the original end date. The amount the Government contributed to furlough pay gradually reduced during the extended period.

Until 30 June 2021, the Government covered 80% of furloughed employees' wages for the hours not worked, up to a maximum of £2,500 per month. Employers were not required to contribute to employees' wage costs other than national insurance contributions (NICs) and pension contributions (but they could choose to top up employees' wages at their own expense).

During July 2021, the scheme covered 70% of the employee's wages and the employer was required to contribute 10%, so the employee continued to receive 80% of their normal wages, up to the maximum of £2,500 (although employers could top this up further). The employer was responsible for paying NICs and pension contributions.

During August and September 2021, the scheme covered 60% of the employee's wages and the employer was required to contribute 20%, so the employee continued to receive 80% of their normal wages, up to the maximum of £2,500 (although employers could top this up further). The employer was responsible for paying NICs and pension contributions.

The ability to flexibly furlough employees continued throughout this period, so employees were able to work part time. Employers were required to pay employees in full for the hours they worked.