London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

‘One of the most difficult decisions’: UK won't renew furlough program beyond October despite warnings of massive job losses

‘One of the most difficult decisions’: UK won't renew furlough program beyond October despite warnings of massive job losses

UK Chancellor Rishi Sunak has said a popular program to support furloughed workers amid the Covid-19 outbreak cannot last indefinitely. The opposition warned that many people will lose their livelihoods unless it is extended.

Under the program, which launched in April, employers can apply for grants to cover more than half of the wages of employees they were forced to furlough because of the lockdown. The scheme was later renewed until October 31 and has helped to retain 9.6 million jobs, according to government data. However, the program will not be extended any further, Sunak told BBC Radio Scotland.

"It's wrong to keep people trapped in a situation and pretend that there is always a job that they can go back to."


The chancellor said earlier on ‘BBC Breakfast’ that not prolonging the job retention scheme was “one of the most difficult decisions” he had had to make.


"I think most reasonable people will say ‘gosh, that's not something that can carry on forever.’"


“In common with almost all countries around the world … their versions of this are slowly being wound down toward the end of the year,” Sunak said.

The government has been under pressure to renew the program beyond October amid growing fears of a wave of job losses in the autumn. They are coupled with anxieties over a second wave of coronavirus infections, with the next planned phase of easing quarantine restrictions postponed last week due to the daily increase in Covid-19 cases.

Scotland's Economy Secretary Fiona Hylsop argued that the scheme, which has proved to be vital for workers and businesses alike and “undoubtedly helped save lives,” should last longer in some parts of the country.

In a similar vein, Labour Party MP Ed Miliband warned that the government would be “culpable for thousands of workers across the country losing their jobs and livelihoods” if it ends the job retention program prematurely.

London-based think tank the National Institute of Economic and Social Research advised that the government extend the scheme until June 2021. The institute's Deputy Director Garry Young said that shutting down the scheme prematurely would be “a mistake” that would increase “the probability of economic scarring.”

Sunak, meanwhile, rolled out a plan to give businesses a one-off bonus of £1,000 ($1,308) for each furloughed worker who is still employed as of January 31, 2021. The government also plans to launch a £2 billion ($2.6bn) scheme to support creating “hundreds of thousands” of jobs for young people.

Newsletter

Related Articles

0:00
0:00
Close
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
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
×