London Daily

Focus on the big picture.
Wednesday, Jul 09, 2025

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
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×