Furlough will end on September 30th. Effective August 1st employers’ contributions rise to a maximum of £625 per month government contribution declines to £1875 assuming employees are on full furlough these sums are prorated downwards if the employee is on flexible furlough and works some of the time. Total furlough contributions remain at £2500/month which means even if the employer earns more than £2500/month furlough payments will only cover the 1st £2500. Employers can of course make voluntary contributions in excess of this sum. In addition, the employer is responsible the employee’s national insurance and pension contributions.

If you are planning to shed staff at the end of furlough you should start planning now. Remember it is always best to follow a structured process when planning redundancy and to avoid potential unfair dismissal claims this is mandatory for employees who have at least 2 years continuous service including their notice period. Remember also you cannot use furlough payments to fund redundancy or notice payments.
For specific help and advice contact me at https://www.ukemploymentlawadvice.co.uk/contact

M. Newman