Did the furlough scheme work?

In March, the country went in to “Lockdown” and the Furlough Scheme was born. Six months on did the scheme work? Here are some of the key observations:

Confusion: Cut-off dates, rates claimed, payment rights, details changing daily and on it went. Confusion ends on 31 October 2020 — the scheme ends.

Annual Leave: Holidays and annual leave were cancelled, employees left frustrated and holiday requests refused. There’s a long tail of pent up demand for leave. This is going to be a long-term issue.

Workplace Duties: Businesses had to rely on employee flexibility, while Unions were worried employees may be exploited. There’s likely to be a transition period with a clear understanding of “who does what”.

Whistleblowing, “Furlough Fraud”: Some unscrupulous businesses tried to “wangle” Furlough payments. This led to an increased whistleblowing. Other employers genuinely struggled to follow the rules.

Equality and Inclusion: Furlough has an impact on equality and inclusion. Some businesses may face discrimination complaints about decisions made under the scheme.

Health Issues: Furloughed employees suffering from health issues may have missed out on support from line managers and Occupational Health support. Many will return having lost confidence, others will suffer mental health problems. Health is a big issue for all businesses.

Flexible working and Home Working: We have become a nation of flexible and home workers. Mutual trust and keeping in touch with employees is key. Employers will need to balance the needs of the businesses, with the needs of employees.

Employee Training and Development: Employees returning from Furlough may have missed out on ongoing training and may be struggling to keep up with CPD requirements. Some may have even lost skills. Businesses need to be alert to these problems and provide adequate support.

Technology: Zoom, Teams and Skype meetings are the norm. Even Employment Tribunals and Courts are holding remote hearings. The increased use of technology means that Cybersecurity and GDPR will become very relevant again. Data protection policies and systems will be vital to enable businesses to take advantage of advances in Technology and Government plans to kick start the economy. Businesses without adequate systems and policies may struggle.

Redundancy: As Furlough ends thousands of businesses are having to get to grips with complex restructuring and collective redundancy consultation, with limited experience and limited or no guidance policies.

Conclusion: Furlough hasn’t prevented large scale redundancies, or stopped key sectors and industries collapsing. The full impact of the pandemic on trade and industry is only just becoming visible. So what can businesses do to survive?

The answer is clear. Plan ahead, identify key industries and business partners, put in place an infrastructure, a framework with support and policies and most of all adapt. Enthuse employees to buy into the business and help them think innovatively. Train them, help them, trust them and most of all encourage everyone. Now is the time for all businesses to regroup and like humans, become leaner and fitter to ensure survival in the future.

Enjoyed this? Read more from Sarah Williams, Taylors Solicitors

Latest news

1

Crowds turn out as Darwen’s state-of-the-art Youth Zone opens in style Darwen Youth Zone launch

Crowds turn out as Darwen’s state-of-the-art Youth Zone opens in style

24 Apr 2026

2

New appointments at fulfilmentcrowd Ben Chicken (Director of Commercial), Katie Shepherd (Director of Marketing), Paul Taylor (Managing Director), Rachel Miller (Director of Finance) and Matthew Humphreys (Director of Sales)

New appointments at fulfilmentcrowd

23 Apr 2026

3

CoolKit partners with KIA for groundbreaking light commercial vehicle CoolKit named among the first five approved Kia PBV conversion partners

CoolKit partners with KIA for groundbreaking light commercial vehicle

23 Apr 2026

4

Lumo reveals first refurbished West Coast train The first West Coast line train by Lumo

Lumo reveals first refurbished West Coast train

22 Apr 2026

5

Multi-million pound investment in Blackpool's power network Multimillion-pound investment programme which will transform the electricity network in Blackpool

Multi-million pound investment in Blackpool's power network

21 Apr 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
AI & Cybersecurity Summit
AI and Cybersecurity Logo
Summit
28 Apr 2026

AI & Cybersecurity Summit

Dunkenhalgh House , Blackburn Road, Clayton Le Moors, BB5 5JP

08:30 - 11:00

Sub36 Networking - Outdoor Elements
Sub36 Outdoor Elements Logo1920x1008
Networking
29 Apr 2026

Sub36 Networking - Outdoor Elements

Outdoor Elements, Pump House Dean Wood, Trapp Lane, Burnley, BB12 7JD

09:00 - 11:00

LBV128 May/June Magazine Networking Event
Canva - Mag Launch
Networking
19 May 2026

LBV128 May/June Magazine Networking Event

Colne Market Hall, Lancashire, BB8 0HS

08:30 - 10:30

Funding Summit
Funding Logo Canva Mid
Summit
17 Jun 2026 - 17 Jun 2026

Funding Summit

Village Hotel Blackpool

08:30 - 11:00

Sales acceleration in this uncertain economic climate
Logo.jpg.jpg
LBV Hub Seminars
28 Apr 2026 - 28 Apr 2026

Sales acceleration in this uncertain economic climate

Lancaster & Morecambe College, Lancaster, LA1 2TZ

08:30 - 10:30

Vibe Coding: "Who owns what when no one wrote the code?"
April PTC Banner.png.png
LBV Hub Networking
28 Apr 2026 - 28 Apr 2026

Vibe Coding: "Who owns what when no one wrote the code?"

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Manufacturing for Tomorrow Club
Example.png.png
LBV Hub Seminars
30 Apr 2026 - 30 Apr 2026

Manufacturing for Tomorrow Club

University of Lancashire, Preston, PR1 2HE

09:00 - 11:30

Dazzle & Decadence
Dazzle & Decadence TryBooking Header.png.png
LBV Hub Fundraisers
30 Apr 2026

Dazzle & Decadence

Ainsworth Jewellers, 57-59 Darwen St, Blackburn, BB2 2BW

18:00 - 20:00

Blackburn Beer and Gin Festival 2026
Blackburn Beer and Gin Festival 2026
LBV Hub Social
01 May 2026

Blackburn Beer and Gin Festival 2026

BB1 8NB

17:00 - 23:00

Society1 Open Coworking Day
LBV Hub Networking
06 May 2026 - 06 May 2026

Society1 Open Coworking Day

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 16:00

Emergency First Aid at Work
LBV Hub Seminars
08 May 2026 - 08 May 2026

Emergency First Aid at Work

FGH Training, 3rd Floor, Storey House, White Cross Business Park, Lancaster, LA1 4XQ

09:00 - 16:00

The AI Lab: E-commerce
LBV Hub Seminars
08 May 2026 - 08 May 2026

The AI Lab: E-commerce

Door4, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin