London Daily

Focus on the big picture.
Wednesday, Sep 30, 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
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
Scottish Government Proposes Replacing 32 Councils With Larger Regional Authorities
Ofgem Raises UK Household Energy Price Cap by 4% From October
UK Counter-Terrorism Police Continue Investigation After Five Arrests Near RAF Fairford
OECD Cuts UK 2027 Growth Forecast to 1%
Labour Says State Pension Triple Lock Remains Protected Through Current Parliament
Andy Burnham Pledges National Care Service With Free Social Care in England
Six Flags Permanently Shuts Landmark X2 Roller Coaster Following Safety Scandals
Metropolitan Police Rule Out Terrorism in Golders Green Stabbing Investigation
Lithium-Ion Battery Identified as Cause of Fatal Merseyside House Fire
UK Department Rejects New Sea Use Framework Due to Stakeholder Fatigue
Major Thames Water Pipe Burst Causes School Closures in London
Aldi Commits £900 Million to Expand UK Supermarket Network
Scottish Affairs Committee Warns Skills Shortages Threaten Defence Sector Expansion
Parliamentary Committee Warns Northern Ireland Budget Deadlock is Stalling Economic Growth
NHS Hospitals in England Face Severe Shortages of Essential Medications
Home Secretary Signals Major Overhaul of UK Immigration and Leave to Remain Policies
Chancellor Promises New Job Schemes Alongside Strict Fiscal Discipline
Energy Secretary Proposes Taxpayer-Funded Green Transition and National Electricity Grid
UK Government to Renationalise Avanti West Coast Railway Franchise in March
Prime Minister Andy Burnham Pledges Major Social Care and Infrastructure Reforms
Five Suspects Released on Bail Following Alleged Bomb Plot Near RAF Fairford
UK Diesel Prices Hit Record High of 199p Per Litre
Transport for Wales and Network Rail Complete Electrification of South Wales Metro
Defra Expands Incentives for Sustainable Farming and Biodiversity in England
Northern Ireland Executive Approves Funding Package to Resolve Public Sector Pay Disputes
Universities UK Warns of Financial Insolvency Risks for Higher Education Institutions
UK Prisons Activate Emergency Protocols to Manage Capacity Pressures
UK Government Establishes New Safety Standards for Frontier AI Models
Home Office Tightens Skilled Worker Visa Requirements and Dependent Rules
Ministry of Defence Restructures Royal Navy Frigate Procurement to Prevent Overruns
UK Government Mandates New Housing Targets to Address National Shortage
UK and Scottish Governments Reach Agreement on North Sea Energy Transition
NHS Launches Digital Overhaul to Reduce Surgical Backlogs in England
Bank of England Holds Interest Rates as Service Sector Inflation Persists
UK Chancellor Announces Fiscal Consolidation Measures to Stabilize National Debt
RNLI Chief Executive Condemns Misinformation and Abuse Targeting Volunteer Crews
Metropolitan Police Charge Swindon Man with Assisting Foreign Intelligence Services
British Intelligence Report Warns Environmental Collapse Threatens Global Defense Infrastructure
Conservative Party Rejects New Taxes to Fund UK Social Care Reforms
Labour Government Signals Intent to Ease Residency Restrictions for Foreign Care Workers
Prime Minister Andy Burnham and Norwegian Prime Minister Jonas Støre Meet to Strengthen North Atlantic Defense
UK Government Plans to Revive Equity Loan Scheme to Assist First-Time Home Buyers
Prime Minister Andy Burnham Pledges Radical Reform for UK Utilities and Social Care
UK Treasury Prepares Difficult Autumn Budget Amid High Debt and Energy Volatility
Civil Aviation Authority Launches Review of Air Traffic Systems Following Digital Failure
X Reports First Increase in UK Revenues Following Advertiser Boycott
Shetland Islands Council Approves £400 Million Inter-Island Tunnel Project
Foreign Secretary Ed Miliband Warns Iran Against Hostile Activities on British Soil
×