This week over on instagram, I was in conversation with David at thepfcoach talking all things Employment, redundancy and furlough.
What is the furlough scheme?
The job retention scheme, more commonly known as furlough created by Chancellor Rishi Sunak.
The overarching aim of the scheme was to reduce unemployment in the UK, saving hundreds and thousands of jobs from redundancy. They did this by supporting the payment of employee’s wages during the coronavirus pandemic.
The scheme reimbursed employers 80 percent employees gross pay, up to £2,500 a month. Employers were able to ‘top up’ employees wages to 100 percent pay if they liked.
Current figures show that there are 9.5 million people on furlough at present.
When will the scheme end?
It was announced on 12 June 2020 that the scheme would end on October 31, 2020 and stopped taking new applicants on 10 June 2020.
What happens now?
Over the next three months, the Government will keep paying the 80 percent subsidiary, but employers will have to cover National Insurance and Pension contributions.
In September, the Subsidiary will reduce to 70 percent, with employers paying the additional 10 percent. They will also need to pay National insurance and pension contributions.
In October, the contributions will drop to 60 percent with employers expected to pay the additional 20 percent.
It has been confirmed there will be a £1000 retention payment available to businesses for each employee they bring back from furlough. They will need to retain them in employment until at least January 2021.
Will the £1000 help save jobs?
It’s unlikely. Given the amount of money an employer needs to pay towards the cost of retaining employees, £1000 will not go a long way. Therefore, there continues to be concerns regarding increasing unemployment.
The National Institute of Economic and Social Research (NIESR) predict 1.2 million jobs will be lost in November and December 2020.
I’m on furlough. What should I do next?
There’s a few things that you can do.
If you return from furlough, make sure you are comfortable returning. This involves catching up with your manager to talk through business changes and updates. Make sure you also cover any Covid risk assessment.
The second is to make sure your CV is up to date and relevant. It’s an employers market with stiff competition for roles, so anything you can do to set yourself apart from the competition, will help get your foot in the door should redundancies be announced.
If you need help reviewing or creating your CV you can find details of services via our Fiverr channel.
The final piece of advice I can give, is to give yourself the opportunity to generate additional revenue streams wherever possible.