Furloughed staff to be £500 worse off on pay day

New analysis from comparethemarket.com indicates that, despite the new Coronavirus Job Retention Scheme saving millions of jobs, people who have been furloughed may face an immediate financial shortfall. The scheme will mean that people on an average UK salary will receive just over £500 less than their usual monthly pay cheque under the Coronavirus Job Retention Scheme, assuming their employer is not topping up their salary.

Furthermore, with recent estimates revealing that as many as 8.3 million individuals could be furloughed under the Coronavirus Job Retention Scheme, this could equate to a staggering £4.1 billion in lost earnings.

At a time when people may be looking to reduce household expenditure, to offset the loss of earnings, comparethemarket.com has calculated that households can save on average £850 annually, which equates to £70 per month,  just by switching energy, broadband, home and motor insurance providers.

Anna McEntee, Product Director, comparethemarket.com, said“Households feeling the pinch during this crisis could find these savings hugely valuable in managing their household finances. While this may not cancel out the significant impact the pandemic is having on some households’ income, shopping around for a new provider is a step that we can all take as a way to reduce costs. With an average combined saving standing at nearly £850, shopping around for insurance, energy and broadband can go some way to combatting the payday pinch being felt by many UK households.”