WAGE WOES
When does the furlough scheme end and what happens next?
THE furlough scheme will end today as the government winds up its coronavirus financial support.
The Coronavirus Jobs Retention Scheme officially closes at the end of the day, meaning the government will no longer pay workers' wages.
1
According the the Office for National Statistics, more than one million workers are still benefiting from furlough.
Experts are expecting a rise in unemployment when the scheme ends.
It was originally due to end in March this year, but an extension was announced in the Budget as lockdown continued for longer than expected.
The furlough scheme paid temporarily laid off workers 80% of their wages - up to £2,500 a month.
It supported millions of workers during the pandemic and prevented many job losses.
The Government previously covered the whole bill for the cost of the help.
But in July companies started chipping in 10% to the cost of paying furloughed workers, and this increased to 20% in August.
Firms continued to pay 20% of the wages of furloughed staff, but they will now have to take on the full cost.
more money news
Unions previously called for the job support to become permanent in case of further economic shocks.
The economy has started to recover from the pandemic but around one million jobs remain at risk as some businesses could still close.
Here, we explain all you need to know about the furlough scheme and when it will end.
When does the furlough scheme end?
The Chancellor announced in the Budget in March that the furlough scheme would be extended until the end of September this year.
The Government's wage support was extended to help firms get back on their feet after lockdown eases.
However, no further expansion has been announced and the scheme closes today.
The Coronavirus Job Retention Scheme has protected more than 11million jobs since its creation in March 2020.
Mr Sunak said: “Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK.”
How has the furlough scheme changed and will it be extended again?
The scheme won't be extended again as it closes from today.
When the wage support was first announced, the government covered 80% of workers' wages up to £2,500.
Employers had to contribute 10% from July, rising to 20% in August and September.
Staff were paid their usual full salary for any hours they worked.
For hours not worked, employers have had to cover National Insurance and pension contributions.
The Chancellor first announced the support on March 20, 2020, at the beginning of the pandemic.
It was originally only timetabled to last until May 31, 2020.
It was then extended to October 2020, before the deadline was pushed back again to December amid a winter wave of the virus.
It was then confirmed to continue into spring 2021 before the final September 30 end date was announced.
What happens next?
Around one million workers who are still on furlough will be wondering what happens when the scheme is withdrawn.
We previously explained your redundancy rights if you've been furloughed, but you will also have rights if you are made redundant as a result of the scheme closing too.
Your employer can't cut your hours or even give you a pay cut just because the scheme is ending either.
If your contract of employment reserves the right to vary your pay and hours though, you could see some changes from tomorrow.
It's worth checking over your contract now so you're prepared for any changes.
There are benefit schemes you can apply to that offer financial aid that might assist once the furlough scheme has gone as well.
These could help tide you over once the furlough money has been cut off.
Today the government has announced a £500million scheme to help hard-up families over the winter months.
Universal Credit is another scheme worth applying for as you could get monthly payments between £344 and £596.58.
Otherwise you can apply for charitable grants, council tax reduction or help with your mortgage interest payments too.
What is happening to the Job Support Scheme?
The Job Support Scheme (JSS) was set to replace furlough and run for six months from the start of November 2020 to the end of April 2021.
The scheme aimed to continue to support businesses and their employees facing coronavirus-related woes, and was expected to come into effect in December.
The Chancellor hoped the JSS extension would reduce the millions of job losses expected when furlough ends.
But rising cases of coronavirus, another lockdown and a troubling economic outlook led Mr Sunak to continue the furlough scheme for longer instead.
Under the JSS, employees could work one day a week and earn up to 73% of their wages.
It was designed to help employees working for businesses that shut down in areas put under previous Tier 2 and Tier 3 restrictions.
Read More on The Sun
Employees on the scheme would have needed to have worked a minimum of 33% of their hours to be eligible, and businesses had to contribute a third of wages.
But the scheme is not expected to return when the furlough scheme ends today.
Rishi Sunak vows furlough WILL end in September and no plans to extend it
We pay for your stories!
Do you have a story for The Sun Online Money team?
Email us at [email protected]
Topics