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

College restaurant honoured with top culinary award from prestigious chefs’ guild Karen Lilley Front Of House Lecturer David McKown David Lyon Scholars Manager And Blackburn College Principal Dr Fazal Dad

College restaurant honoured with top culinary award from prestigious chefs’ guild

10 Jun 2025

2

Cosmetic manufacturer lets new unit on Frontier Park, Burnley Badgequo have agreed to let the site on Frontier Park

Cosmetic manufacturer lets new unit on Frontier Park, Burnley

10 Jun 2025

3

SQ Digital celebrates 25 years and enters new era with CEO appointment Kamal Essa

SQ Digital celebrates 25 years and enters new era with CEO appointment

09 Jun 2025

4

New chair appointed to Atlas BFW Management Graham Cowley

New chair appointed to Atlas BFW Management

09 Jun 2025

5

Napthens makes key appointments to further growth strategy of newly appointed managing director Napthens appointments Jayna Mistry, Onyeka-Obedi and Rebecca Rhodes

Napthens makes key appointments to further growth strategy of newly appointed managing director

09 Jun 2025

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
Sub36 Networking
Sub36 Social1200pxandi Lewis
Networking
11 Jun 2025

Sub36 Networking

Mytton Fold Hotel , Blackburn , BB6 8AB

09:30 - 11:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200pxtrident 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College Industry Hub, Burnley, BB120AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

The Business Network Central & East Lancashire
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Preston Freelancer Meet-Up
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

Preston Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron
BU-June-Event-BRAD-1.jpg.jpg
LBV Hub Networking
18 Jun 2025 - 18 Jun 2025

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron

Blackpool Football Club, Bloomfield Rd, Seasiders Way, Blackpool, FY1 6JJ

08:30 - 11:30

Chamber Business Lunch – June
Chamber Logo1.png.png
LBV Hub Networking
20 Jun 2025 - 20 Jun 2025

Chamber Business Lunch – June

Lancaster House Hotel, Bailrigg, Lancaster, LA1 4GL

11:00 - 13:30

90 day Business Planning Workshop
LBV Event Header.png.png
LBV Hub Seminars
20 Jun 2025 - 20 Jun 2025

90 day Business Planning Workshop

Bolton Arena, Arena Approach, Horwich, BL6 6LB

09:00 - 16:30

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 LBV122 Online Graphic
Subscribe now

Weekly news bulletin