London Daily

Focus on the big picture.
Tuesday, Aug 18, 2026

Covid: What will happen when furlough ends?

Covid: What will happen when furlough ends?

The furlough scheme, which protected millions of jobs during the pandemic, is being wound up at the end of September.
How did furlough work?


The government has been paying towards the wages of people who couldn't work, or whose employers could no longer afford to pay them, up to a monthly limit of £2,500.

At first it paid 80% of the wages, but in August and September it paid 60%, with employers paying 20%.

How many people are still on it?


The most recent figures show 1.6 million people were on furlough at the end of July - the lowest level since the start of the pandemic and 340,000 fewer than a month earlier.

The numbers dropped as the economy reopened. In May 2020, nearly nine million people were on furlough.

High numbers of workers in restaurants and hotels were furloughed
Will unemployment rise when it ends?


Some employers with workers on furlough may find they cannot afford to keep them on when furlough ends.

International travel, and other businesses which depend on it, are still seriously disrupted. Some furloughed workers in these areas may lose their jobs.

Many forecasters, including the Bank of England, are expecting a small rise in unemployment.

What if I'm made redundant?


If you were made redundant while on furlough, you have a number of legal rights. The selection process must be fair, you must be given notice, and you are entitled to tax-free redundancy pay.

You may also qualify for other financial help.

The main benefit for anyone losing their job after a period in work is jobseeker's allowance (JSA).

This is worth £59.20 a week, if you are under 25, or £74.70 a week if you are 25 or over.

If you need help with money matters, there is a host of free guidance and advice available, including:

*  The Money Navigator tool from the Money and Pensions Service relates to coronavirus-related money matters

*  The Turn2Us charity has a benefits calculator

*  Guidance is available from Citizens Advice and from the Low Incomes Tax Reform Group

In the wider jobs market, the number of vacancies is at a record high - so there are lots of employers looking to hire new workers.

What has furlough cost?


The government says 11.6 million jobs have been supported by the scheme.

From March 2020 to the end of September 2021, the cost of furlough will come to about £66bn, according to estimates from the Office for Budget Responsibility.

That's a huge sum, around one fifth of the money the government has spent on the response to Covid.

The Chancellor, Rishi Sunak, launched the furlough scheme in March 2020

However, the scheme has undoubtedly helped to save millions of jobs.

At the start of the pandemic it was feared that more than one in 10 workers would become unemployed.

Instead the unemployment rate is currently less than one in 20.

Newsletter

Related Articles

0:00
0:00
Close
China’s Lifelike AI Humans Move From Livestreams Into Real-World Service Roles
UK Government Rolls Out £5.8 Billion Regional Investment Programme to Revive High Streets
AstraZeneca Ends Late-Stage Lung Cancer Trial After Data Shows No Survival Benefit
London Stocks Fall for Sixth Day as Bond Yields and Middle East Tensions Weigh on Markets
UK Government Rewrites Planning Rules to Accelerate Housing Near Transport Hubs
UK Wildfires Spread Across Southern England as Met Office Issues Severe Heat Warnings
British Doctors Warn Cancer Care Is at Risk as Hospitals Reject More Than a Quarter of Urgent Referrals
UK Hospitals Suspend Critical Care as Extreme Heat Exposes Infrastructure Failures
Sarah Ferguson Reportedly Retreats to Late Ex-Boyfriend's Swiss Chalet
Cristiano Ronaldo and Georgina Rodríguez Sign Prenup Protecting Their Separate Fortunes
Thieves Steal Antonello da Messina Renaissance Masterpieces From Sicilian Museum
Better.com Founder Who Fired 900 Employees on Zoom Is Ousted as CEO
Italian Speed Camera Issues Nearly 32,000 Fines in 10 Weeks, Worth More Than €3 Million
AI Manager at San Francisco Store Recommends Firing Human Employee
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Campaigners Press Government to Strengthen Rights for Four Million Gig Workers
Government Considers Higher Private Rents to Spread Asylum Accommodation Across UK
UK Moves to Protect Historic Pubs From Conversion Into Housing and Offices
Nigel Farage Wins Clacton By-Election to Return to House of Commons
British Manufacturers Report Rising Cybersecurity Threats Across Industrial Supply Chains
Royal Navy Increases Monitoring of Russian Ships in UK Waters by 25 Percent
England Adds More Than 350 Medical Training Posts to Strengthen NHS Capacity
NHS Waiting Lists Over 52 Weeks Rise by More Than 11,000 Patients
Brent Crude Near $88 Raises Fresh UK Energy Cost Concerns
UK Treasury Warns Prolonged Strait of Hormuz Disruption Could Cut 2027 Growth to 0.3 Percent
UK Economy Grows 0.4 Percent in Second Quarter as Energy and Inflation Risks Persist
UK Heatwave Triggers Emergency Alert as Government Unveils £65 Million Farm Support Package
Reform UK Unveils Plan to Cut Welfare Spending by More Than £50 Billion a Year
Prime Minister Andy Burnham Praised Extinction Rebellion for Doing a 'Great Service'
UK Wildfire Phone Alert Triggers Backlash as Users Switch Off Emergency Warnings
Heathrow Roads Reopen After Burst Water Main Floods Access to Terminals 2 and 3
Former NBA Players Enes Kanter Freedom and Royce White Say They Will Enter 2027 WNBA Draft
Former Cambridge Professor Jason Arday Found Dead Days After Resigning Amid Plagiarism Row
US Appeals Court Rules AI Agent's Website Actions Are Legally Attributed to the User
France's Constitutional Council Blocks Social Media Ban for Children Under 15
Liechtenstein Changes Royal Succession Rules to Allow Women to Inherit the Throne
Women Allege Rape and Sexual Abuse at British Army College for Teenage Recruits
Minnesota: Two independent investigators posed as Muslims (one wearing a burqa) and showed how they could vote in elections without identification.
UK Prime Minister Andy Burnham Takes Regional Tour to Highlight Local Infrastructure and Environmental Problems
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
Bank of England Warns Rising Inflation Could Squeeze UK Household Incomes
UK Government Announces £65 Million Aid Package for Farmers Hit by Severe Drought
UK Economy Grows 0.4% in Second Quarter Despite Energy Market Pressures
UK Issues Emergency Alert as Severe Wildfires Spread Across England and Wales
UK and Finland Discuss European Defence and Continued Support for Ukraine
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
UK Government Deploys Military to Help Fight Wildfires and Bans Disposable Barbecues
UK Records Hottest Day of the Year as Fifth Summer Heatwave Peaks in Southern England
UK Condemns Houthi Actions and Warns of Red Sea Threat to Global Trade
UK and Solomon Islands Open Wildlife Photography Exhibition in Honiara
×