Furlough phase-out in UK may cause steep fall in workers’ income

Job loss or need for universal credit add to vulnerability once firms required to pay more into plan, thinktank finds

Thousands of workers in the UK will suffer a steep fall in income as employers make redundancies after the furlough scheme begins winding down from Thursday, the Institute for Fiscal Studies warned.

Workers who live with higher earners will be unable to claim benefits and could see their income drop to zero should they lose their job. Families with children could lose as much as a third of their income if they are forced to rely on universal credit, the thinktank said.