Covid: How is furlough changing and when will it end?

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Covid: How is furlough changing and when will it end?

The furlough scheme, which protected millions of jobs during the pandemic, is entering its final weeks.

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What will happen to me if I am on furlough?
Employers will need to decide whether to take back their furloughed workers or make them redundant.

In most cases, an employer should have already started the redundancy process if it's planning to let workers go by 30 September.

Firms don't legally have to give furloughed workers notice that they are being called back to work, but it's recommended that they should.

If you haven't heard from your employer, you should contact them as soon as possible.


What should you do if you are at risk of being made redundant?
If you are facing redundancy it's important to apply for any support schemes as soon as possible, says James Andrews, a personal
finance expert at money.co.uk.

"They often take weeks to be approved, so now's the time to act before the furlough payments stop for good."

The main benefit for anyone losing their job after a period in work is the new-style jobseeker's allowance (JSA).

This is worth £59.20 a week, if you are under 25, or £74.70 a week if you are 25 or over.


How does furlough work?
Furlough was introduced in spring 2020, to stop people being laid off by their employers during lockdown. It applies across the UK.

The government initially paid 80% of the wages of people who couldn't work, or whose employers could no longer afford to pay them -
up to a monthly limit of £2,500.

In July 2021 employers were required to pay 10% of salaries - with the government's contribution falling to 70%.

In August and September, the government's contribution reduced further: it now pays 60% and employers pay 20%.

Employers also have to pay staff pension and National Insurance contributions.

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