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Will the furlough scheme return?

WAGES of millions of Brits were paid by the government when the pandemic first forced businesses across the country to close.

As fears are growing for a new wave of restrictions, many are asking if there are plans to bring back the furlough scheme.

Rishi Sunak has not shared any plans for bringing back furlough
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Rishi Sunak has not shared any plans for bringing back furloughCredit: PA:Press Association

Will the furlough scheme return? 

Whitehall insiders have hinted at a return of the furlough scheme, if the Omicron variant forces the hospitality and retail sector to close down again.

A Treasury source told The Times: "That could mean a return to the furlough scheme but depending on what, if any, further restrictions are necessary there might be other ways of providing that support."

It comes after Downing Street last month ruled out once again bankrolling people's wages at enormous expense.

Ministers and hospitality bosses are said to be reluctant to return to furlough measures amid concerns it could further erode consumer confidence.

"This is about seeing businesses through a difficult period," a government source said.

"But it could all look very different in four weeks’ time. We don’t want to overcommit at this stage."

What has Chancellor Rishi Sunak said on the furlough scheme? 

Treasury officials said they're nowhere near relaunching furlough just yet, but would always look at new measures in case the outbreak spiralled. 

A Treasury spokesman said: "We're taking the action set out in our Winter Plan and are acting early to help control the virus’s spread - while avoiding unduly damaging economic and social restrictions.  

"Our £400bn covid support package will continue to help businesses into spring next year and we will continue to respond proportionately to the changing path of the virus, as we have done since the start of the pandemic."

When did the furlough scheme end?

The Job Retention Scheme, commonly known as furlough, was brought in at the start of the coronavirus outbreak in March 2020.

It came to an end on September 30, 2021 after having supported households during the majority of the Covid pandemic.

Furlough was initially due to end on October 31, 2020 but it was extended three times.

Almost 9 million workers were furloughed in May 2020 and this dropped to 1.6 million in September this year before the scheme ended.

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