How the End of Furlough Will Affect your Payroll

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As furlough comes to an end, the crucial question for business is, what does this mean for your payroll?

2020 saw many unusual occurrences following the emergence of Covid-19. Here in the UK, the term “furlough” became a frequently used word amongst British workers and business, as over 11 million jobs were furloughed at some point between 20 April 2020 and 14 August 2021.

When Will Furlough End?

After almost 18 months, furlough will come to an end in the UK on the 30th September 2021.

On October 1st 2021, all previously furloughed employees, whether on flexi furlough or full furlough must return to work.

Key furlough dates include:


28th September

If you’re claiming for furlough days in September 2021, you must submit this claim by this date.

14th October 2021

In cases where you haven’t claimed enough for the month of August 2021, you must amend your claim by 11:59pm on this date.

28th October 2021

To make any amends to a claim with regards to not claiming enough for September 2021, you have until 11:59pm on this day.

Once your business has submitted its final furlough claim, you can return to your normal payroll process for the October payment period.

What is Furlough?

What is Furlough?

Furlough was introduced in March 2020 by the UK government under the Job Retention Scheme, in response to the closure of businesses across the country. Initially, the government pledged to pay 80% of people’s wages below £2,500. This was scaled back to 70% of up to £2,187.50 in July 2021 and during August and September 2021, it was reduced further to 60% of a maximum of £1,875.

Sectors which have had some of the highest number of employees furloughed include – hospitality, retail and travel.

Find your Perfect Payroll Solution with FastPay

Thanks to FastPay’s direct debit services, ensuring your employees are paid on time couldn’t be any easier.

To enquire about our Direct Credit solution you can contact us online or alternatively, you can call us on 0161 737 5290.

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