According to an announcement by the Treasury, in total UK employers have repaid £1.3 billion in furlough money to HMRC since July 2020. Included in this amount is £300 million handed back in the last 3 months by firms who have overclaimed, or decided they no longer need payments received through the Coronavirus Job Retention Scheme.

Chancellor of the Exchequer, Rishi Sunak, said:

“This Government stepped in to help when people needed it most, supporting nearly 12 million jobs through furlough. This worked, nearly 2 million fewer people are now expected to be out of work in the UK than previously feared.”

He added:

“Now with our recovery underway it is heartening to see that £1.3 billion in furlough grants have been returned as the economy recovers.”

In July 2021 the number of people using the Coronavirus Job Retention Scheme dropped by 340,000 - with more than a third of those aged between 18 and 34 - to the lowest level since the start of the pandemic. At this time the government’s contribution fell from 80% of an employee’s salary to 70%, and employers had to start paying 10% of wages. For August and September, the government’s contribution was then reduced further.

The Coronavirus Job Retention Scheme came to an end on 30th September 2021 – with employers that need to make claims for September, having until 14th October to do so. Over it’s lifetime the Scheme protected nearly 12 million jobs and supported more than 1.3 million businesses across the UK and to date, the Government has spent £68.5 billion o it.

Companies are expected to continue repayments through adjustments to claims and the voluntary disclosure service into 2022, additionally HMRC is cracking down on those who have fraudulently claimed furlough through its 1,250-strong Taxpayer Protection Taskforce.