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.

“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.

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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.

“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.”