Furlough warning as end of scheme set to ‘put savings to the test'

Furlough, or the Coronavirus Job Retention Scheme, has been in place for over a year, protecting the jobs of those who worked for businesses impacted by the ongoing pandemic. With millions of jobs protected by the scheme, it is finally winding down and will come to its conclusion on September 30 – now just three days away. While the Government is shifting its focus towards getting people back into work and supporting them via other means, there remains worry about what the end of the scheme could mean for individuals.

Of particular concern is job security, as businesses under pressure financially could be forced to let go of staff they can no longer afford. This could create a ripple effect amongst the jobs market.

One expert has warned of the personal implications of the end of furlough, suggesting it could put a strain on long-term savings vehicles such as workplace pension arrangements.

Kate Smith, Head of Pensions at Aegon, offered insight on the matter, suggesting that a risk of unemployment could be one of the major hurdles Britons are forced to confront post-furlough.

She said: “While the number of people receiving furlough support has gradually diminished, the latest figures show that there were nearly 1.6million people still in receipt of furlough at the end of July.

© Getty furlough september 2021

“As the scheme winds-up it will put employers, the jobs market and also people’s savings habits to the test.

“It’s as yet unclear whether the re-opening of the economy will mean those still on furlough will have jobs that they can pick back up, or whether their roles are now at risk of redundancy.

“We’ve heard a lot about labour shortages in certain sectors but that doesn’t necessarily mean those out of work will rush into roles they may not want or may be unsuitable for.”

However, as Ms Smith highlighted, despite the turbulence of the last year and a half, many people have continued to save, particularly through long-term vehicles such as a pension.

DON’T MISS

PIP claimants win appeal against DWP [UPDATE]

High Street Voucher scheme: £100 discount off retailers [EXPLAINED]

Rishi Sunak to lower salary level for repaying loans [INSIGHT]

She added: “Despite the number on furlough peaking at 8.9 million in early May 2020 and a total of 11.6 million jobs furloughed since the scheme started, workplace pension participation has remained resilient.

“Very few people have opted out of their workplace pension and the already-low ‘opt out’ rates even saw a slight fall over the last year.”

The data is encouraging, particularly for those who are especially keen to secure their financial futures for after they depart the workforce.

Pensions are seen as a good investment for later down the line, and can often grow with compound interest to be worth far more than a person first put in.

© EXPRESS furlough scheme end

It is for this reason Britons are often encouraged to start pension saving as soon and as often as possible to allow their money to build up over a longer period of time.

However, when it comes to saving arrangements, it may not be all good news with the end of furlough.

In fact, there is still a great deal of uncertainty surrounding what the termination of the scheme will actually mean for those who remain on it.

Ms Smith concluded: “Any large rise in unemployment following the wind-up of the furlough scheme could put the brakes on the significant progress of auto-enrolment and workplace pension participation rates.

“Individuals who lose their job not only face a loss of income but will also no longer contribute to their workplace pension, and benefit from ‘free’ money from their employer. Gaps in pension saving will only exacerbate the differences in the financial health of those whose jobs have continued unaffected during the pandemic and those who have faced difficulties.”

At the start of the month, data showed the number of people on furlough had fallen to the lowest level since the start of the pandemic, news which was hailed by the Government.

Around 340,000 people were recorded as moving off furlough across the UK over the course of July. However, as of July 31, there were a total of 1.6million people on the scheme.

Chancellor of the Exchequer, Rishi Sunak, said: “It’s fantastic to see furlough levels at their lowest since the start of the pandemic with young people in particular getting back to work and kickstarting their careers as the UK gets back to business.

“With furlough naturally unwinding and coming to a close at the end of the month we are doubling down on our Plan for Jobs – focusing our support on giving people the skills and opportunities they need to succeed in the jobs of tomorrow.”

Internet Explorer Channel Network
News Related

OTHER NEWS

Disable the Show desktop option in the Windows 11 Taskbar

© Provided by Windows Central If you don’t use the Show desktop button in the Taskbar, you can use this guide to disable the option on Windows 11. Windows 11 ... Read more »

Gamer Malaysia kongsi ganjaran RM21.7 juta

© Provided by Sinar Harian SEORANG gamer Malaysia yang terkenal dengan gelaran ‘NothingToSay’ muncul jutawan selepas merangkul gelaran naib juara pada kejohanan e-sukan paling berprestij di Romania. Pada saingan The ... Read more »

Lanjut tempoh pengundian selama 3 hari, kata Bersih

© Provided by Free Malaysia Today Bersih 2.0 berkata lima hingga tujuh hari harus diperuntukkan untuk pencalonan, sementara tempoh pengundian dipanjangkan kepada tiga hari, sekaligus dapat mengurangkan kesesakan. PETALING JAYA: ... Read more »

Empat lelaki ditahan rompak warga asing

© Provided by Sinar Harian BENTONG – Seramai empat lelaki tempatan ditahan pada Khamis selepas terbabit dalam kes rompakan berkumpulan terhadap seorang lelaki warga asing pada 9 Oktober lalu. Ketua ... Read more »

Burundi starts COVID jabs; just North Korea, Eritrea remain

1 / 4Virus Outbreak BurundiBurundi’s Minister of Health Dr Thaddee Ndikumana, right, and China’s ambassador to Burundi Zhao Jiangping, left, attend a ceremony to mark the arrival of the first ... Read more »

February date set for Cuba Gooding Jr. Manhattan sex crimes trial

The actor Cuba Gooding Jr. will face trial on sex crimes charges in February, three years after his indictment, a Manhattan judge ruled Monday. The Oscar-winning actor appeared in Manhattan ... Read more »

No Covid rules broken in Johnsons' Christmas arrangements, No 10 insists

Boris Johnson and his wife Carrie complied with coronavirus rules when a family friend stayed with them over Christmas, Downing Street said. Nimco Ali reportedly spent Christmas at No 10, ... Read more »

Lake Mead water levels expected to drop even more

Lake Mead is at its lowest level ever. The water level at Lake Mead has dropped more than 150 feet in about the last 20 years. By January, it’s expected ... Read more »

Rome mayoral election won by centre-left, exit poll suggests

Exit polls in Rome’s mayoral election runoff indicate a clear advantage for the centre-left candidate over a contender from the far-right Brothers of Italy. Roberto Gualtieri, a former economy minister, ... Read more »

I hated being an accountant so quit & set up a £25m firm – mum had no idea for 2 years, now I've paid off her house

A SAVVY businesswoman has revealed how she managed to build a fashion firm now worth a whopping $47 million (£25 million) while keeping it hidden from her parents for two ... Read more »

Mom charged in daughter's death months after she's found dead in yard, SC police say

A South Carolina woman has been charged with manslaughter in the August death of her daughter, police said. Ayla Franklin, 22, was found face down and unresponsive in the front ... Read more »

VP Kamala Harris to visit Lake Mead Monday, talk climate change

Vice President Kamala Harris will visit Southern Nevada on Monday and is scheduled to talk about climate change and investing in climate resilience. Read more »

British Museum to display the world's oldest map of stars

LONDON (AP) — The British Museum will display what it says is the world’s oldest surviving map of the stars in a major upcoming exhibition on the Stonehenge stone circle. ... Read more »

Inside Kourtney Kardashian and Travis Barker's whirlwind engagement from kinky sex and steamy PDAs to pregnancy rumours

IT’S been a whirlwind romance for Kourtney Kardashian and Travis Barker but the pair haven’t exactly been shy about their love – or their sex life.  The Blink-182 drummer, 45, ... Read more »

The reason passengers always board planes on the left

NEXT time you board your flight, you may notice that you always enter the cabin from the left of the plane. And experts have explained how this dates back to ... Read more »

Strictly Come Dancing's Greg Wise strips off to reveal dramatic weight loss after leaving the competition

GREG Wise has revealed his dramatic weight loss since appearing on Strictly Come Dancing.  The 55-year-old shared a rare topless selfie of himself after getting the boot from the dancing ... Read more »

Best kids' yoga mats 2021: from interlocking foam squares to printed yoga mats

THE BENEFITS of yoga for adults are numerous: it's great for enhancing flexibility, strengthening muscles, helping to prevent injury and it calms and quietens the mind – to name just ... Read more »

Hero husband injured saving pregnant wife after she was mauled by ‘jealous' bear in Russian circus

A HEROIC husband was injured as he saved his pregnant wife from being mauled by a “jealous” bear at a Russian circus. The woman – scratched and floored by the ... Read more »

Move quick to get best mortgage deals before interest rates rise

Home owners looking to re-mortgage should get their skates on. That’s the message from mortgage brokers surveying the latest signs of market movement, and the latest remarks from Bank of ... Read more »

Coronation Street's Will Mellor stunned as Alison Hammond starts quizzing him about drugs on This Morning

CORONATION Street's Will Mellor looked taken aback on This Morning when Alison Hammond surprised him with a question about drugs. The 45-year-old actor, who plays baddie Harvey Gaskell in the ... Read more »

‘Beautiful' influencer, 22, killed in Audi S3 horror crash – just weeks after she ‘predicted' her death

A MUM has paid tribute to her “beautiful” daughter who was killed in a horror car crash just weeks after she had spoken about her own death. Paige Rice, 22, ... Read more »

Abang lemas ditarik ombak besar selepas selamatkan adik

© Provided by Sinar Harian LUMUT – Seorang lelaki lemas selepas berjaya menyelamatkan adiknya yang dibawa ombak ketika mandi di pantai Teluk Senangin di sini pada Isnin. Dalam kejadian kira-kira ... Read more »

Disney+ magic fades: Barclays downgrades Walt Disney after three years

© Reuters/Dado Ruvic FILE PHOTO: FILE PHOTO: Smartphone with the “Disney” logo is seen on a keyboard in front of the words “Streaming service\ (Reuters) – Walt Disney’s stock received ... Read more »

First bitcoin futures ETF to make its debut Tuesday on the NYSE, ProShares says

The ProShares bitcoin-linked exchange-traded fund will make its debut officially on Tuesday. A futures-based ETF won’t allow investors to buy bitcoin directly but is still a significant regulatory feat for ... Read more »

Cristiano Ronaldo once scored an indirect free-kick so perfect he found the only gap available

The compilation of Cristiano Ronaldo’s best free-kicks stacks up against the very best set-piece takers in the history of the game. © GiveMeSport p1fht0ru1v8hs1eqha21kmgc9f.jpg For a lengthy period, the Portuguese ... Read more »

McLaren admit Mercedes and Red Bull battle 'surprised' them as reason for pace explained

McLaren have even surprised themselves with their pace on the F1 tracks this season, according to the team’s Racing Direction, Andrea Stella. Drivers Lando Norris and Daniel Ricciardo currently sit ... Read more »

Lewis Hamilton vs Max Verstappen rivalry ‘fantastic for F1'

© Getty Images GettyImages-1342810927 (2).jpg Lewis Hamilton and Max Verstappen’s rivalry is “fantastic” for Formula 1, according to the organisation’s CEO Stefano Domenicali, with the championship title race set for ... Read more »

Rugby-England coach Jones freshens again for November internationals

By Mitch Phillips © Reuters/David Klein FILE PHOTO: England Training LONDON (Reuters) – England coach Eddie Jones has included four uncapped players and another eight who made their debuts in ... Read more »

League of Legends 11.22 Patch Notes: Release Date, Leaks, Champions, Buffs & Nerfs, Jungle Changes, Bug Fixes and Everything That You Need To Know

League of Legends update 11.22 is not too far away and we have all of the information that you will need to get you there. © GiveMeSport Janna is one ... Read more »

Exclusive: Ian Holloway delivers verdict on Birmingham City struggles under Lee Bowyer

© Provided by Football League World Championship – Birmingham City v Fulham Discovery+ and Quest pundit Ian Holloway has backed Lee Bowyer to turn Birmingham City’s form around with the ... Read more »

Father of suspect in David Amess killing worked on anti-extremist projects

Photograph: Aaron Chown/PA The father of the suspect in the inquiry into David Amess’s killing, was a committed anti-extremist who risked his own life trying to thwart hate groups, his ... Read more »

Goto energy collapses becoming FOURTH supplier in a week to cease trading

ENERGY supplier Goto Energy has collapsed, making it the fourth energy supplier to go bust in a week. It leaves roughly 22,000 customers in the dark after the company announced ... Read more »

Squid Game creator drops first season 2 hints – and they could reveal origins of murder-filled competition

SQUID Game is the Netflix thriller that everyone is talking about and its creator has dropped the biggest hint yet that a second instalment could very well be in the ... Read more »

British Airways Holidays winter sun sale – with Malta from £209 & Dubai from £369

BRIGHTEN up your winter with a bargain getaway from British Airways Holidays sunshine sale, now on until October 27, 2021. It has slashed prices on holidays to lots of our ... Read more »

How to save energy in every room of your house – tricks and tips to keep costs down in your kitchen, hallway and bedroom

HOUSEHOLDS are certainly feeling the pinch when it comes to the cost of electricity and energy in the home. We recently revealed that cash-strapped Brits have had to fork out ... Read more »

Van Dijk takes heat off Salah, pointing more towards ‘not normal' Liverpool star

Liverpool defender Virgil van Dijk wants more people to highlight Sadio Mane’s return to form, amid the spotlight on Mohamed Salah. © PA Images Virgil van Dijk on his return ... Read more »

Tommy Fury backed to beat Jake Paul and brother Logan in double-header

John Fury has backed his son Tommy to beat Paul brothers Jake and Logan in a double-header. The 22-year-old is closing in on a highly-anticipated clash with YouTube star Paul ... Read more »

New heavyweight destroyer? 'I knew KO was coming!'

Steve Robinson announced his arrival as a serious heavyweight contender with a huge knockout victory and has revealed how he delivered a stunning punch. The towering Newcastle fighter produced a ... Read more »

Arsenal transfer news: Gunners consider bid for Southampton's Mohamed Elyounoussi

Arsenal and Leicester City are both considering bids for Southampton’s Mohamed Elyounoussi, who is enjoying an unexpected resurgence this season. © Provided by FourFourTwo Mohamed Elyounoussi According to the Daily ... Read more »

‘I don't remember' – De Bruyne opens up on CL final loss

Kevin De Bruyne has opened up on Manchester City’s Champions League final defeat against Chelsea last season. © PA Images Kevin De Bruyne is substituted off with an injury The ... Read more »