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

Carousel tax fraudster loses £90m court appeal Arif Umarji Patel The Seized Ferrari Counterfeit Underwear Container With Counterfeit Clothes Inside 002

Carousel tax fraudster loses £90m court appeal

05 Nov 2026

2

Combined authority takes control of £45m adult skills fund Welding Bootcamp Learners In A Practical Lesson At Lancaster And Morecambe College

Combined authority takes control of £45m adult skills fund

05 Nov 2026

3

Legal View: Finding the right separation route Amy Harris Feat Img

Legal View: Finding the right separation route

05 Nov 2026

4

Panache Cruises in triple appointment Panachecruises

Panache Cruises in triple appointment

05 Nov 2026

5

Skiddle seals new investment to support European ambitions ben-sebborn-richard-dyer-skiddle.jpg

Skiddle seals new investment to support European ambitions

05 Nov 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
LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

The Landmark, School Lane, Burnley, BB11 1UF

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Sub36 Reunion & Networking
03 Dec 2026

Sub36 Reunion & Networking

Burnley Football Club, BB10 4BX

15:00 - 17:00

Lancashire Net Zero Conference 2027
NZC27 Social 1200x800Generic 1 11 Feb 2027

Lancashire Net Zero Conference 2027

The Wellbeing Farm, Edgworth, Wheatsheaf Hill Farm, Plantation Road, BL7 0BY

09:30 - 02:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

Immigration changes on the horizon - what HR teams need to know
Immigration webinar.png.png 10 Nov 2026

Immigration changes on the horizon - what HR teams need to know

Online, via Microsoft Teams

12:00 - 12:45

National Minimum Wage (NMW) and National Living Wage (NLW) Compliance
Untitled design (11).png.png 10 Nov 2026

National Minimum Wage (NMW) and National Living Wage (NLW) Compliance

Online - Microsoft Teams

11:00 - 11:45

Preston Tech Connection: People Behind The Ideas
11 Nov 2026

Preston Tech Connection: People Behind The Ideas

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:03

The Business Network Central and East Lancashire
12 Nov 2026

The Business Network Central and East Lancashire

Longridge House, Preston, PR3 2TB

11:30 - 14:15

Ai in business: protect, innovate & grow
Door4 Forbes 12 Nov 2026

Ai in business: protect, innovate & grow

Brockholes Nature Reserve, Preston, PR5 0AG

09:00 - 12:00

Napthens' Cumbria Clay Shoot - for Penny Conservation Charity
N123_1200x400px_Title&Subtitle (1).png.png 12 Nov 2026

Napthens' Cumbria Clay Shoot - for Penny Conservation Charity

Leighton Hall Estate Storrs Lane, Carnforth, LA5 9ST

09:00 - 16:00

Lancaster District Business Support Expo
Lancaster And Morecambe Logo 1 18 Nov 2026

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

09:00 - 13:00

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 LBV130 Online GraphicWebsite
Subscribe now

Weekly news bulletin