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Furlough Scheme ending: What help is available?

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The government’s Coronavirus Job Retention (Furlough) Scheme is due to wind up its support initiatives in October. Here we discuss what this means for employers, and those currently furloughed, as well as what help we can offer to companies struggling with the change. 

What is the Coronavirus Job Retention (Furlough) Scheme? 

The Coronavirus Job Retention (Furlough) Scheme was introduced by the government in March. The scheme was set out to secure the jobs and wages of individuals unable to work due to the effects of the COVID-19 outbreak. It saw employers across the UK reimbursed for a total of 80% of their furloughed employees wages, meaning that both businesses and their workers alike were provided with a level financial security while unable to carry out their usual operations. 

When is the Furlough Scheme ending? 

Chancellor Rishi Sunak has put forward a plan for the winding-down of the scheme, with a resolution date of the 31st of October. From this date forward, it is set to be left to businesses to cover the wages of workers still on furlough leave.  

What will happen when the Furlough Scheme ends?  


When the furlough scheme ends, businesses with workers currently receiving pay while on furlough leave will now have to cover the full payment of 80% of their salaries. While ever these workers remain employed by the company, their furloughed status means that they are entitled to this 80% until they either return to work/their regular salary, or their employment ceases.  

Employers have recently been made accountable to cover 10%, with the government covering the remaining 70%, as the wind-down of the scheme commenced. 


Employees currently placed on furlough leave, for whatever reason, will still be entitled to payment of 80% of their regular salaries while they remain in employment with the company. They will have no obligation to fulfil any of their regular duties until their employer makes the decision to end their term of furlough leave, and reinstate them in their role.  

What help is available? 

With the economic effects of COVID-19 still continuing to cause difficulty across all sectors, it is likely that the end of the Coronavirus Job Retention (Furlough) Scheme will see further financial pressure for businesses nationwide. 

As licensed and regulated insolvency professionals, we can provide a range of services to assist companies facing financial difficulty. These include: 

An affordable debt repayment plan (CVA) 

As licensed insolvency practitioners, we are able to oversee the installation of a Company Voluntary Arrangement: a formal debt repayment plan agreed between a company and its creditors. 

The process takes into account how much of its outstanding debt a company can realistically afford to pay off (projected as how many pence to every pound owed) and breaks this down into monthly payments over a span of up to five years.  

If your company is struggling with outstanding debt, and you worry that the current economic climate will affect your ability to keep up with repayments, get in touch to discuss this option today. 

Read more on CVA here

Company liquidation (CVL) 

For the companies hit hardest by the current state of economic decline, the most sensible option may be to cease operations in a legitimate and efficient manner. Doing so at an early stage can ensure that the position of a company’s creditors is protected from further damage, and thus protects directors from accusations of insolvent/wrongful trading.  

Wilson Field are licensed to oversee the process of Company Voluntary Liquidation (CVL) from start to finish, ensuring a smooth operation for directors, employees, and creditors alike.  

Read more on CVL here

Exploring corporate finance 

If your company is suffering from poor cash flow due to a decline in business during the COVID-19 outbreak, and you are concerned that the end of the Furlough Scheme may intensify this, we can help. 

As well as being insolvency professionals, Wilson Field are specialist finance brokers with the ability to explore and secure a variety of corporate finance options for companies in need of a cash boost. 

If you feel that a cash injection could help to get your business back on track, explore our range of financial solutions here

In summary 

The Coronavirus Job Retention (Furlough) Scheme is due to end on the 31st October. It was introduced in March in order to secure the wages of employees unable to work throughout the COVID-19 outbreak. It supported companies by providing reimbursement for 80% of the wages of furloughed employees, meaning that they did not have the pressure of accountability for retaining the jobs of workers unable to fulfil their usual duties. 

From 1st September 2020, companies have been required to cover 10% of the salary payments that their furloughed employees are entitled to, with the government’s contribution dropping from 80% to 70%. From the 31st October, employers with workers still furloughed will now be liable for payment of the full 80%, with workers having no obligation to fulfil their regular duties unless they are asked to return to work, and to their regular salary. 

The financial pressure created by the COVID-19 outbreak, combined with the end of the Furlough Scheme, is bound to create difficulty for businesses across all sectors. Luckily, as licensed insolvency professionals, we can help. 

How we can help 

We are a team of licensed and regulated insolvency professionals with the tools and experience to support your company through the current economic situation. Whether the answer is formulating a debt repayment plan between a business and its creditors, raising finance to stimulate cash flow and support the company through the current economic pressures, or pursuing company closure, we can help. Read more on these options below. 

Affordable debt repayment plan (CVA)

Corporate financial solutions 

Company liquidation (CVL) 

It is crucial to act as soon as possible if your company needs financial assistance, as worsening the position of any company creditors can lead to severe consequences for directors. Get in touch today for a free consultation with one of our experienced advisors. 

Beverley Horton

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Authored by Lisa Hogg

Lisa Hogg

Director & Licensed Insolvency Practitioner

Beverley Horton Christopher Callaghan Stephen Hall

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