Boris Johnson has warned there can be no further extension to the Government’s furlough scheme beyond the end of October.
In an interview with London’s Evening Standard, the Prime Minister said that in the long term, the programme to protect jobs through the pandemic was not “healthy” for the economy or for the employees it covered.
“I think people need to recognise that the particular restrictions that furlough places on you are not, in the long term, healthy either for the economy or for you as an employee,” he said.
“You are keeping people in suspended animation. You are stopping them from actually working. I am being absolutely frank with you, we are pushing it out until October but in the end you have got to get the economy moving.”
The furlough scene has seen more than 9million people paid 80 per cent of their salary by the Government during lockdown.
The scheme is now winding down, with employees able to take furloughed staff back part time since July 1.
Furlough payments will continue to reduce until the end of October, when the scheme finally ends.
Experts have warned there could be two million redundancies in September alone as companies decided they cannot afford to take staff back.