UK furlough scheme to be wound down - | Hudson McKenzie

UK furlough scheme to be wound down

August 3, 2021 | Employment, News

The furlough scheme is coming to an end on 30th September 2021. 

The UK government first announced the furlough scheme during the first lockdown in March 2020. This allowed employers to continue paying employees although they could not work due to the pandemic. The scheme pays 80% of employees’ wages for time they cannot work.

From 1st August, the scheme was wound down as the UK government asks employers to contribute a further 10% to employees’ wages who have been furloughed and is due to rise to 20% in August and September. 

Fears surrounding the furlough scheme ending

The concerns around the furlough scheme ending mainly involve people losing their jobs when the scheme ends as many have become redundant whilst on furlough. Another concern is that taxes will rise due to the amount the government has had to borrow since the pandemic.The Institute for Fiscal studies has said that £200bn had to be pumped into the economy to support jobs and businesses.

Should you have any queries regarding the above information or if you require assistance with your corporate, employment or immigration matter, please get in touch with a legal professional at Hudson McKenzie via email at or by telephone +44(0) 20 3318 5794.

The information provided does not amount to legal advice.