UP TO 12million people will be furloughed or unemployed in the coming months — with the burden falling on the low-paid, a think tank warns.

From today, the job retention scheme (JRS) allows firms hit by the lockdown to suspend workers while the government pays 80 per cent of their wages.

Unemployment is expected to hit 3.4million this summer, and the Resolution Foundation predicts 8.3million will also be furloughed — meaning a third of the workforce will be idle.

Report author Daniel Tomlinson said: ‘The JRS is what stands between Britain experiencing high unemployment over the coming months, and catastrophic depression-era levels of long-term joblessness.

‘The priority from today is for the government to process claims as quickly as possible so that the millions of firms relying on it get the financial support they need.

‘But it is striking that some of the hardest hit sectors are the ones with the lowest paid employees.’

The report suggests almost 40 per cent of furloughed workers could be in the low-paid hospitality and retail sectors, with just four per cent in finance and insurance.

But many have been laid off already with 1.4million new claims for universal credit in the past four weeks.

The JRS was extended last week to cover the four months between the start of March and the start of July.

The Treasury originally thought 3million employees would be furloughed at a cost of £10billion.

It now believes the cost will be £42billion in the first three months, with 8.3million people being paid.

Ministers have warned it could be autumn before restrictions are lifted on some sectors, including hospitality and leisure.

The Resolution Foundation has called for the scheme to be extended to part-time workers to prevent them being laid off.

‘The scheme’s higher-than-expected scale means that the JRS is now central to both combating and understanding this crisis,’ said Mr Tomlinson.