Furlough warning as scheme’s demise threatens to create a “nightmare” for Britons – “high and dry!”
Experts have issued a FURLOUGH warning to Britons, saying that many of them may be left “high and dry” after the plan ends. There are specific concerns regarding financial security and how people will cope once the formal support programs have ended.
Since March 2020, when COVID-19-related limitations were initially implemented, furlough has aided millions of people as firms were forced to close. Many people were saved from losing their jobs as a result of the strategy since businesses couldn’t afford to keep them on during the shutdown. The government stepped in and has usually paid 80% of salaries up to £2,500 per month, though this has fallen in recent months as companies have been compelled to shoulder extra financial responsibilities for individuals who have remained on the system. Furlough, on the other hand, is set to finish in September, with September marking the start of the scheme’s demise. This type of formal help will be phased out by the end of the month, in what some have dubbed a “cliff edge” for individuals who rely on it. Furlough has been in effect for over a year, so when it ends, it will be a huge change.
However, other people are anxious about what the end of the scheme may mean for those who still want financial assistance. For individuals who do not have monetary security in the future, the end of furlough might trigger a “debt nightmare,” according to one analyst.
“Hundreds of thousands of individuals might be left high and dry when the furlough plan ends, and those who are carrying debts could find themselves in real difficulty,” Sarah Coles, personal finance expert at Hargreaves Lansdown, warned.
“Around 1.6 million to two million people were on full or partial furlough at the start of August, according to the ONS Business Insights poll. On the surface, they should be able to find work if their company is unable to hire them again, given that there were a projected 953,000 job vacancies in May to July 2021, a record high.
“However, in reality, it’s quite difficult. There is a significant discrepancy between the industries where individuals are on furlough and the industries that are hiring. “Brinkwire Summary News”: “Not every sales assistant wants to take a pay cut.”