You are here: Home - Editor's Pick -

Over a million still on furlough, with scheme set to end within weeks

0
Written by: Christina Hoghton
10/09/2021
The end of the furlough scheme could lead to a rise in unemployment and increased household debt

The number of people on furlough has fallen to its lowest level since the start of the pandemic, according to government figures.

The number of people on the Coronavirus Job Retention Scheme (CJRS) on 31st July stood at 1.6 million – down 340,000 from almost two million at the end of June and a peak of nearly nine million at the height of the pandemic in May last year.

However, this marked a slower decline than in previous months, with only three weeks to go until the furlough scheme ends.

A report by Reuters suggested that up to one million could still be on furlough when the scheme expires at the end of the month.

Government figures also show that a further 800,000 people have claimed the latest self-employment scheme grant.

So what happens next?

Chancellor of the Exchequer, Rishi Sunak, said: “With furlough naturally unwinding and coming to a close at the end of the month we are doubling down on our Plan for Jobs – focusing our support on giving people the skills and opportunities they need to succeed in the jobs of tomorrow.”

Sarah Coles, personal finance analyst, Hargreaves Lansdown, added: “Hundreds of thousands of people could be left high and dry when the furlough scheme comes to an end, and those who are carrying debts could find themselves in serious difficulty.

“On the face of it, if their employer can’t take them on again, they should be able to find work, given there were an estimated 953,000 job vacancies in May to July 2021, a record high.

“However, in reality, it’s incredibly tough. There’s a real mismatch between the sectors people are on furlough from and the sectors that are recruiting. Not every sales assistant wants to take a pay cut to move into care or retrain as a delivery driver. It’s why NIESR forecasts unemployment will hit 5.4% at the end of the year.”

Figures released today revealed a slowdown in economic growth, with GDP rising by just 0.1% in July, lower than had been expected by economists.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week

Privacy Preference Center

Necessary

Advertising

Analytics

Other