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Furlough extension to 30 September 2021 – Key dates you should know

Rishi Sunak announced in the budget yesterday that the Coronavirus Job Retention Scheme (also known as the “furlough scheme”) which was due to end on 30 April 2021 will now be extended for a further 5 months, ending on 30th September 2021.

This extension will undoubtedly come as a welcome boost to employers, particularly those in the hospitality sector who may not be fully able to re-open until at least the 21st June as outlined by the Government’s “road map”.  Some businesses however, have already had to make many difficult decisions and whilst the tapering of contributions should help to avoid a cliff-edge at the end of the furlough scheme, it is still likely that jobs are being sustained by the CJRS when in reality they may no longer be needed.

Key dates:

  • The Coronavirus Job Retention Scheme will now end on 30th September 2021.
  • For periods ending on or before 30th April 2021, claims can be made for employees who were employed on 30th October 2020 (an RTI submission must have been made to HMRC between 20th March 2020 and 30th October 2020)
  • For periods starting on or after 1st May 2021, claims can be made for employees who were employed on 2nd March 2021 (an RTI submission must have been made to HMRC between 20th March 2020 and 2nd March 2021)

An employer or employee does not need to have previously claimed under the Furlough Scheme and therefore employees can be put on furlough for the first time on a part-time or full-time basis provided that they were on the employer’s payroll on the dates above.  Employers can report and claim for a minimum period of seven consecutive calendar days. 

It is essential that employers who are wishing to place an employee on furlough leave obtain the employee’s written consent to go on leave and confirm any salary reduction that will apply.

How much can be claimed?

The level of grant available to employers under the scheme remains the same until 30th June 2021.  Employers can claim 80% of an employee’s usual salary for hours not worked up to a maximum of £2,500 per month.  Employers will only be required to cover National Insurance and employer pension contributions.

From 1st July 2021, the level of grant will be tapered with employers contributing towards the cost of furloughed employees’ wages.







Government contribution: wages for hours not worked

80% up to £2,500 80% up to £2,500 70% up to £2,187.50 60% up to £1,875 60% up to £1,875

Employer contribution:  employer National Insurance and pension contributions

Yes Yes Yes Yes Yes

Employer contribution wages for hours not worked

No  No 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 80% up to £2,500 per month 80% up to £2,500 per month


Employers are still permitted to top up employees’ wages above the 80% /£2,500 cap at their own expense should they wish to do so.

For more information on how to calculate the amount you can claim, please click here. 

For more information on notice periods and furlough, please click here to read our previous article.  

Support for the self-employed 

The fourth grant under the Self Employment Income Support Scheme (SEISS) will cover lost earnings from February to the end of April 2021.  Eligible self-employed people who have lost income due to coronavirus will be able to claim 80% of their earnings each month up to £2,500.  A fifth grant will be available  for lost income in June, July and August 2021.  Newly self-employed workers will also be entitled to these grants as long as they submitted a tax return by midnight on 2nd March 2021.  To find out if you are eligible for the grant, please click here.

We’re here to help

If you have any questions regarding the furlough scheme (employer or employee) our specialist employment solicitor, Lisa Aitken is available to provide advice and support.  Lisa can also provide tailored advice in relation to restructuring, redundancy, unfair dismissal claims as well as contracts of employment and HR advice.  Please call Lisa on 07960 469988   for a free initial telephone consultation or you can email her at

Lisa Aitken

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