From Thursday 1 July 2021, the level of Government contribution towards furloughed employees’ wages will have reduced to 70%

Whilst the Government’s Furlough Scheme to protect jobs across the UK has been extended to 30 September 2021 – today marks the first day towards its phasing out.

The Government will now pay 70% of a furloughed employees’ wages up to a maximum cap of £2,187.50. Employers will now have to top up the remaining 10% of employees’ wages to ensure that they continue to receive 80% of their wages (up to £312.50). A reminder that any claims to be made for furlough days in June 2021, must be made by 14 July 2021.

NFDA would also like to remind dealers that the next stage to the scheme’s transition will take place on 1 August 2021. Here it will reduce again. The Government will pay 60% of furloughed employees’ wages up to £1,875 and businesses will need to contribute the further 20% (up to £625). This will then remain at the same rate through to the end of the Furlough scheme on 30 September 2021.

Sue Robinson, NFDA Chief Executive, commented: “Whilst the end to the Furlough scheme may signify a return to normality for dealerships, it is important dealers suitably plan for the curtailment of Government support”.



Adam Weeks

NFDA Communications Assistant

201 Great Portland Street, London, W1W 5AB

Direct: +44 (0) 20 7307 3413

Mobile: +44 (0) 7722271813