The Financial Times has obtained data through a freedom of information act (FOI) request, which states that companies have repaid £709m from furlough claims that have been made under the Coronavirus Job Retention Scheme (CJRS). According to the data, an additional £319m has been reclaimed from companies that had mistakenly claimed the incorrect amount.
As of 14 May 2021, the Treasury had spent £64bn towards the furlough scheme, which went towards funding the wages of 11.5m workers during the pandemic.
Companies Bouncing Back
Many companies have bounced back significantly since the reopening of the economy, with a wide range of businesses paying back furlough cash in the past few months.
Primark, Halfords, ASOS and Ikea are a number of the big-name brands to repay some, if not all of their furlough claims.
Hotel Chocolat was recently added to the list of companies who have made a furlough cash repayment. According to the Financial Times, Hotel Chocolat repaid £3.1 million in furlough money, following an increase in sales.
HMRC Welcomes Repayments
HMRC has said it welcomes employers repaying their furlough grants “because they no longer need the grant, or have realised they’ve made errors and followed our guidance on putting things right”.
However, whilst many businesses continue to repay their furlough claims, some have faced criticism for using the government-funded scheme to cover employee’s wages, whilst paying their executives/partners bonuses.
If you’d like any further information about repaying furlough claims get in touch via our contact page.