London Daily

Focus on the big picture.
Friday, Feb 06, 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
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
US and Iran to Begin Nuclear Talks in Oman
Winklevoss-Led Gemini to Slash a Quarter of Jobs and Exit European and Australian Markets
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
NASA allows astronauts to take smartphones on upcoming missions to capture special moments.
Trump administration to launch TrumpRx.gov for direct drug purchases
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Epstein Case Documents Reignite Global Scrutiny of Political and Business Elites
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
UK Royal Family Faces Intensifying Strain as Epstein-Linked Revelations Rock the Institution
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
Tech Mega-Donors Power Trump-Aligned Fundraising Surge to $429 Million Ahead of 2026 Midterms
UK Pharma Watchdog Rules Sanofi Breached Industry Code With RSV Vaccine Claims Against Pfizer
Melania Documentary Opens Modestly in UK with Mixed Global Box Office Performance
Starmer Arrives in Shanghai to Promote British Trade and Investment
Harry Styles, Anthony Joshua and Premier League Stars Among UK’s Top Taxpayers
New Epstein Files Include Images of Former Prince Andrew Kneeling Over Unidentified Woman
Starmer Urges Former Prince Andrew to Testify Before US Congress About Epstein Ties
Starmer Extends Invitation to Japan’s Prime Minister After Strategic Tokyo Talks
Skupski and Harrison Clinch Australian Open Men’s Doubles Title in Melbourne
DOJ Unveils Millions of Epstein Files, Fueling Global Scrutiny of Elite Networks
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
Trump Nominates Kevin Warsh as Fed Chair to Reorient U.S. Monetary Policy Toward Pro-Growth Interest Rates
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
×