The beginning of the end of the furlough scheme
Today marks the beginning of the end of the furlough scheme with employers now being asked to contribute towards the wages of furloughed employees. For companies that are already struggling this could mean further job losses are on the horizon.
Since the scheme was announced in March 2020, the Government has been supplementing 80% of the wages of those unable to work due to the pandemic. From today, that level will drop to 70%, with employers topping up the remaining 10%. As we move forward, in August this will reduce again to 60% with employers required to top up wages by 20%.
There are currently 3.4 million people in the UK on the furlough scheme which is due to end on 30th September 2021. With the Government advising they are not planning on extending restrictions past 19th July, it is looking unlikely there will be any extension to the furlough scheme as most businesses will be able to re-open at this point.
By making it more expensive to furlough people, the Government hopes it will encourage employers to bring back staff full time, the issue is whether they can afford to.
Even with restrictions lifting on 19th July some sectors will still be affected. Businesses involved with international travel which could see many
job losses with the air travel industry one of the hardest hit during the pandemic, alongside the hospitality sector.
Employers faced with the unenviable task of making people redundant may be concerned for the welfare of their staff after what has already been a tumultuous 18 months. It’s also one of the most stressful and challenging things that a leader or HR professional will have to execute.
It’s worth considering the support of an experienced outplacement consultancy to ensure that transitioning employees are given expert support and advice as well as helping your HR team and protecting your employer brand.
Our Next Steps Outplacement programmes blend the individual coaching and mentoring expertise of Next Steps Consulting with ResourceBank’s expert knowledge of the recruitment market and outplacement projects to provide a unique service. We can support the most senior of Directors as well as your operational and front-line team members.
Organisations managing redundancy programmes have one outplacement partner to support their HR team through to the delivery of expert and appropriate support to every employee.