Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

CoronavirusLatest NewsPay & benefitsFurloughPayroll

Furlough changes contributing to payroll errors

by Ashleigh Webber 19 Apr 2021
by Ashleigh Webber 19 Apr 2021 Shutterstock
Shutterstock

Numerous changes to furlough and government support schemes means nine in 10 employers have paid staff incorrectly over the past year.

A survey of 250 HR and payroll managers found 91% have made payroll errors every month over the last year, due to frequent changes to business support schemes including the Coronavirus Job Retention Scheme.

Furlough and business support

Furlough one year on: How has the job retention scheme evolved?

Budget 2021: Furlough extension, business cash grants and more

Budget 2021: Furlough to continue until 30 September

Ninety-four per cent have run into problems processing payroll and 46% said HR and payroll employees had to work extra hours to process the frequent changes to wage subsidies.

At various points over the past 12 months, the level of wage support offered under the furlough scheme has ranged from 60% to 80%, with organisations having to make changes to their processes in order to reflect this.

The level of support offered by the government is currently at 80% of wages for hours not worked, up to a maximum of £2,500 per month. In July this will reduce to 70%, up to £2,187.50; and in August and September it will be 60% of wages up to £1,875. The scheme closes on 30 September.

A third of those surveyed by HR and payroll platform provider MHR International said the number of payroll errors had increased, while 37% said these errors distract them from other critical tasks.

“Payroll and HR teams have shouldered a heavy burden during the pandemic, with changes imposed at the drop of a hat. These have required extensive knowledge of rules about furlough and employment support, National Insurance, pensions, holiday entitlements and employment status,” said MHR CEO Anton Roe.

“These teams need as much support as possible from employers to increase efficiency and avoid delayed or incorrect pay. Having good payroll software in place will not only significantly improve errors made, it will reduce the pressure on these hard-working teams.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The company also surveyed 1,000 UK employees about their experiences of payroll errors over the past year. Of those paid incorrectly, 71% said it has happened three times since the pandemic first hit, and 65% have had to borrow money from friends or family, or use high-interest loans or credit cards to get by.

  Payroll opportunities on Personnel Today

Browse more payroll jobs

Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

previous post
Firms warned over return of Right to Work fines
next post
ONS: Homeworkers did longer hours but took fewer sick days in 2020

You may also like

Restaurant tips should be included in holiday pay

21 May 2025

Fewer workers would comply with a return-to-office mandate

21 May 2025

Redefining leadership: From competence to inclusion

21 May 2025

Pay awards in real terms could fall for...

21 May 2025

Ryanair demands flight attendants pay back salary increase

21 May 2025

Consultation launched after Supreme Court ‘sex’ ruling

20 May 2025

Uncertainty over law hampering legal use of medical...

20 May 2025

Black security manager awarded £360k after decade of...

20 May 2025

Employers ‘worryingly’ ignorant about stress risk assessments

20 May 2025

UK and EU agree to collaborate on ‘youth...

19 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+