Jobs furlough scheme begins to wind down as employers take on paying wages

Credit: PA

The first of the month marks the beginning of the end for the government's jobs retention scheme, or furlough, as employers start contributing to worker's wages once more.

The Chancellor's Coronavirus Job Retention scheme has helped to pay employees 80% of their usual earnings (up to £2,500) since March.

But businesses will now have to share the burden ahead of the plan winding up in October.

From Tuesday 1 September, the government will reduce what it pays to 70% of an employee's salary with the employer paying 10%.

  • Chancellor Rishi Sunak speaking to ITV News in August:

From October the cost to employers will rise to 20% of wages, with the government paying 60%.

Rishi Sunak has previously promised there would be no "cliff edge" cut-off to the scheme, but there are fears of an expected rise in unemployment next month when furlough ends.