London Daily

Focus on the big picture.
Thursday, Oct 08, 2026

Planned job cuts fall despite furlough deadline

Planned job cuts fall despite furlough deadline

August saw the lowest figure for proposed job cuts for seven years, despite the imminent end of the government's furlough scheme.

Figures published by the Insolvency Service show that British employers planned 12,687 job cuts in August, a fall of 11% since July.

The data suggests that the predicted surge in unemployment this autumn may be smaller than expected.

At the height of the pandemic, firms proposed over 150,000 job cuts a month.

Employers planning to make 20 or more staff redundant have to notify the Insolvency Service when they start the process.

The number of cuts they propose gives an early indication of where the job market is heading, long before official unemployment data, which is several months behind.

August was the first month in which firms with staff on furlough were required to pay 20% of their wages, as well as pension and National Insurance contributions.

The scheme ends altogether at the end of September - at this point employers will have to decide whether to pay all their workers' wages themselves, or let them go.

The latest available data shows that 1.9 million workers were still on furlough at the end of June, and experts had predicted that many of them would end up being made redundant.

But just 12,687 job cuts were proposed in August - the lowest number for seven years.

So an autumn surge seems less likely now, said Tony Wilson, director of the Institute for Employment Studies.


"Given the exceptionally high labour demand and fewer people in the labour market due to the crisis and Brexit, unemployment is going to keep falling back over the next few months even as the furlough scheme winds up," he said.

"The end of furlough may well slow or reverse that decline, but the biggest issues in the labour market now are that there's not enough workers rather than not enough jobs."

A number of companies have been reporting problems finding enough workers, with the employers' organisation the CBI warning that staff shortages could last another two years.

Vacancies are at record highs as employers struggle to find workers

The number of vacancies is at a record high, according to recent figures.

The low number of redundancies being proposed is yet another piece of evidence that the UK jobs market is rebounding much more strongly than experts had dared to hope a year ago.

In total, 201 forms notifying redundancies were filed by 143 different employers. Both are among the lowest figures on record.


Until recently, figures for proposed redundancies were not routinely published in the UK, except in Northern Ireland.

Last year the BBC began requesting these figures through the Freedom of Information Act, revealing the extraordinary increase in redundancy plans through the spring and summer of 2020.

This year, the Insolvency Service has started to publish these figures every month on its website.

The data only covers firms proposing 20 or more job cuts, so smaller firms are not picked up by these figures. Employers sometimes end up making fewer redundancies than they initially propose, but they cannot make more than they propose.

The figures are not classified as Official Statistics, which are subject to rigorous quality control procedures.

Data for Northern Ireland is published by the Northern Ireland Statistics and Research Agency as part of its monthly Labour Market Report.

Newsletter

Related Articles

0:00
0:00
Close
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
Middle East Conflict Pushes UK Fuel and Wholesale Energy Prices Higher
Andy Burnham Raises Prospect of Second Brexit Referendum in Review of UK-EU Relations
EY Warns UK Fiscal Headroom Has Halved to £11 Billion Ahead of Autumn Budget
BT Accused of Pressuring Vulnerable Customers During Digital Landline Shift
×