Rishi Sunak told ending furlough puts 2 million viable jobs in peril

Chancellor of the Exchequer Rishi Sunak is putting 2 million viable jobs in peril by ending his coronavirus jobs support programme too early, risking an unnecessary unemployment crisis, according to a think tank.

The Institute for Public Policy Research estimates that 3 million workers will still be relying on the plan when it ends in October, two-thirds of whom are in roles that would be sustainable if the help was extended into next year.

Removing the support early would “cause long-lasting damage to the economy and to people’s lives,” the report said. 

The popular programme is already being tapered, and the report may add to pressure on the government to extend the aid, which has so far helped support almost 10 million jobs.

Even with the plan, which currently pays 80 per cent of an employee’s wage, there are signs the labour market is in crisis.