Furlough Ends

What has been a life saving resource to both employers and employees during the COVID-19 pandemic will now come to an end. September marks the last month of the Furlough scheme supporting over 11.6 million over its duration, with 1.6 million people remaining on the scheme at its close.

The scheme supported employers to keep their staff employed and receiving salary, at 80% of their wages with a limit of £2,500. While this was reduced to 60% in August it still provided much needed support to companies returning to a state of normal.

It is estimated that the furlough scheme has cost £66 billion, which is roughly 20% of the government expenses in response to Covid. The result is evident with the unemployment rate staying less than 1 in 20 which is much better than the feared rate of 1 in 10.

While the scheme might be closing there is still support in the form of Universal Credit and other endeavours by the local councils, with £180 million given back in December 2020 to support tenants alone.