Furlough warning as Britons set for 'big income losses' with unemployment crisis looming
Furlough is slowly winding down, with the Government withdrawing a percentage of its support mere days ago. Previously, the Government contributed 80 percent of the wages of those on the scheme to ensure they did not lose their jobs during the pandemic. However, in efforts to conclude the scheme by the end of September, employers have been required to take on additional financial responsibility.
The Government now only pays 70 percent of wages, and will step down further to 60 percent in August and September.
An observation report from the Institute for Fiscal Studies has warned what this could mean for the estimated 3.4million workers who were recorded as on furlough at the end of April.
The report states a furloughed employee formerly earning £20,000 a year previously cost an employer £155 per month to keep on.
This has stepped up to £322 in July, but will increase once again to £489 per month in August and September.
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