The furlough scheme is being wound down as coronavirus measures are eased across the country.
The gradual end of the financial support comes as tens of thousands of businesses were given the green light to trade again, with venues such as nightclubs allowed to reopen from July 19.
The government used to contribute 80% of pay, up to a cap of £2,500 a month, for hours not worked by furloughed staff.
But as of July 1, the amount the government pays towards furloughed staff has dropped at 70%, up to £2,187.50.
The remaining 10% of furloughed employee’s income, plus pension and National Insurance contributions as before, now come from their employer, again capped at £2,500.
It means, crucially, that employees are still getting 80% of their pay while on furlough - it’s just the amount contributed by the government that is being reduced.
Firms are also allowed to top up furlough pay to 100% if they can afford to do so, and employees are paid in full for any hours they do work.
From August, the furlough support provided by the government will fall even further - we explain below:
How is furlough changing from August?
From 1 August, the government will only cover 60% of an employee's wage for hours not worked, capped at £1,875.
Employers will therefore be required to top this up to 20% of furloughed wages to bring it up to the 80% amount, capped at £2,500.
Again, bosses will also have to pension and National Insurance contributions, and they can top up wages to the full 100% amount if they want to.
The furlough scheme, which has already been extended four times, will stay at this level until it finishes on September 30.
Furlough was meant to end on April 30 this year before the most recent extension.
Who is eligible for furlough?
The furlough scheme is open across the UK, meaning businesses in England, Scotland, Wales and Northern Ireland should be eligible to apply for it.
It is down to businesses to apply for furlough for their staff, rather than it being the responsibility of the employee.
For any furlough claims from May 1 until the end of September, you need to have been on your employer's PAYE payroll on March 2, 2021 to be eligible.
You can be part-time or full time furloughed, with the reduced pay only applying to the hours you don't work.
Any hours you are able to work will be paid at your normal rate.
Workers on full-time contracts, zero-hours contracts and fixed-term contracts, as well as agency workers are eligible for furlough.
According to latest government figures, the number of employees on furlough stood at 3.4million at the end of April.
