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

Sportswear specialist goes into liquidation Milano

Sportswear specialist goes into liquidation

10 Jul 2026

2

Manufacturers urged to cut through the AI hype Mark Edwards

Manufacturers urged to cut through the AI hype

10 Jul 2026

3

HR firm makes key development appointment Sonia Hanson

HR firm makes key development appointment

10 Jul 2026

4

Blackburn College brings national focus to tackling NEET challenge NEET

Blackburn College brings national focus to tackling NEET challenge

10 Jul 2026

5

Vape firm IVG targets £1bn revenue IVG Preston staff

Vape firm IVG targets £1bn revenue

08 Jul 2026

Blackburn College (July-Aug 26)
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
LBV129 July/August Magazine Networking Event
Nov/Dec Networking Event
Networking
16 Jul 2026

LBV129 July/August Magazine Networking Event

Brysdales, Britannia Buildings Drumhead Road, Chorley, PR6 7BX

16:00 - 18:00

LBV130 September/October Magazine Networking Event
Jan/Feb Networking Event - Entrance
Networking
17 Sep 2026

LBV130 September/October Magazine Networking Event

The Beehive Blackburn, Shadsworth Business Park, BB1 2Q

08:30 - 10:30

Built Environment Conference 2026
BEC Listing
Networking
24 Sep 2026

Built Environment Conference 2026

08:30 - 13:00

Sub36 Awards 2026
Awards
16 Oct 2026

Sub36 Awards 2026

Park Hall Hotel & Spa , Chorley

18:00 - 00:00

LBV131 November/December Magazine Networking Event
Jan/ Feb Networking Event - Talking
Networking
19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Lancashire Business Day 2026
LBD Listing
Networking
27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

July Preston Tech Connection Hot Takes
PTC Square July (900 x 900 px).png.png
LBV Hub Networking
15 Jul 2026

July Preston Tech Connection Hot Takes

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:03

Preparing for the changes to unfair dismissal
Logo.jpg.jpg
LBV Hub Seminars
15 Jul 2026

Preparing for the changes to unfair dismissal

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

Achieving more with your money: Your options at retirement
LBV Hub Seminars
16 Jul 2026

Achieving more with your money: Your options at retirement

Accrington Stanley Football Club, Accrington, BB5 5BX

17:55 - 17:55

The Business Network Central and East Lancashire
LBV Header (34).png.png
LBV Hub Networking
16 Jul 2026 - 16 Jul 2026

The Business Network Central and East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Preston Freelancer Meet-Up July
LBV Hub Networking
21 Jul 2026

Preston Freelancer Meet-Up July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Legacy & Leadership – Planning for Lift, Death and business continuity
Logo.jpg.jpg
LBV Hub Seminars
21 Jul 2026

Legacy & Leadership – Planning for Lift, Death and business continuity

Lancaster & Morecambe College, Lancaster, LA1 2TZ

09:00 - 10:30

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