Can ATOL go bust?!

chiltonresident

Hello, 
So, like many others at the moment, we have a holiday booked in August. My husband and I have agreed that we won't go away this year but will postpone until next year, as TUI have said we can amend free of charge.  My husband, however, is extremely concerned that the 'pool' of money ATOL would use to pay out if holiday companies go bust is already fairly low on funds after Thomas Cook folded, so he's feeling really anxious.  Does anyone know what happens if ATOL do run out of money?  Presumably, there's still a guarantee that we'd all get our money back, but where would it come?  
If anyone has any confirmed information,  I would be ever so grateful as, unfortunately, it's caused a few arguments in our house!
Many thanks.

bradders1983

It would come from the Government and we would all have to pay for it through general taxation, just like we will be doing for decades to come for the furlough scheme.

bagand96

Agree with @bradders1983 that if it came to it the Government would have to step in.  Every ATOL holiday sold contributes £2.50 to the fund, although it's unlikely that just sits as a pool of money.  The Air Travel Trust will spread the risk and invest some in bonds, insurances etc.