Boris Johnson repeatedly refuses to extend furlough scheme, despite warnings of mass unemployment

Boris Johnson repeatedly refused to commit to extending the furlough scheme that has supported millions of people’s jobs through the coronavirus pandemic, despite warnings that unemployment is set to surge to levels last seen in the 1980s.

Economists, unions and lobby groups have warned that millions of people could be out of work by early next year unless the government extends its Job Retention Scheme beyond its current end date of 31 October.

Labour leader Keir Starmer pressed the prime minister in the House of Commons on Wednesday, asking whether he would act now to provide further support for sectors and workers that “desperately need it”.

Mr Johnson pointed out that the furlough scheme has cost £40bn so far, adding: “What this government would rather do is get people into work through our Kickstart Scheme, which we are launching today, £2bn to help young people get the jobs they need.”

Under the scheme, employers will receive grants of £1,500 to provide six-month placements for people aged under 24. But the Federation of Small Businesses warned this week that more government action is needed to prevent a “lost generation” of jobless young people.

The prime minister accused the his opposite number of wanting to keep people “out of work and in suspended animation” rather than getting them back into employment.

He claimed that his government’s actions had resulted in a country that is “not only going back to school but going back to work”.

Scottish National Party Westminster leader Ian Blackford warned that a refusal to extend the furlough scheme would amount to a “political choice to accept levels of unemployment last seen under Thatcher in the early 1980s”.

Mr Johnson responded that people on furlough were “languishing out of work”.

Mr Blackford added: “Languishing out of work, my goodness Mr Speaker. The furlough scheme is there to protect people so they can go back to work.”

The government has come under additional pressure in recent weeks to extend its central job support measure, which, as of 1 September pays employers up to 70 per cent of each furloughed employee’s wages.

Governments of France and Germany have both announced that they will continue their own schemes for up to two years.

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