The government should be preparing for levels of unemployment akin to those seen in the 1980s, former UK chancellor Alistair Darling told the Treasury Committee in evidence on economic impacts from pandemic.

Darling’s comments on 3 June come as the government faces increasing scrutiny over how it will bring closure to its job retention scheme, part of its Covid-19 support package to businesses. The government’s furlough scheme, which supports nearly 9 million individuals, pays for 80% of employees’ wages, capped at £2,500.