The government’s Coronavirus Job Retention Scheme (CJRS) started winding down from 1 July.
Around 1.5 million workers are still on furlough and the change affects thousands of firms across the country.
Furloughed staff will continue to receive 80 percent of their wages, but employers will now pay 10 percent of that amount.
However, according to the Institute for Fiscal Studies (IFS), the bill for employers keeping a member of staff on the scheme will rise significantly, putting jobs at risk.
The IFS said the cost would rise from 155 pounds per month, which covers costs such as national insurance contributions (NICs), to 322 pounds in July and 489 pounds in August and September.
Tom Waters, Senior Research Economist at the IFS, said: ‘The furlough scheme does need to be wound down as the economy recovers, rather than attempting to keep every job on life support. But this does mean that some will end up unemployed.’