How has Furlough affected Jobs?

Featured Image - Future of Work 10

2020 has had drastic changes that not anyone expected. Some affected us positively and some affected us negatively. Jobs were affected in both ways.

At the beginning of lockdown, it was obvious that people who were meant to be at work and could not work from home would not be earning money. So the furlough programme was created, it was formally named the 'Coronavirus Job Retention Scheme'. It was designed to fund businesses so they could continue paying 80% of employees' salary for those that would have otherwise been made unemployed.

The furlough scheme seems to be working as Rishi Sunak, Chancellor of the Exchequer seems very pleased so far, as he has stated, "As today's official employment figures show, the furlough scheme has done what it was designed to do - save jobs and help people back to work, where they want to be."

However, the negative side to the furlough programme is that not everyone's job could be saved, as Sunak has told us, "We were clear at the start of the pandemic that we couldn't save every job, but the furlough scheme has supported millions of workers and we want to help employers keep people on. Our Job Retention Bonus will do exactly that, supporting businesses to do the right thing."

The Job Retention Bonus is a £1000 one-off taxable payment to employers, it is for each eligible employee who had been furloughed. However, employers do not have to pay this to their employees.

This shows that furlough has affected the UK quite positively for the COVID-19 pandemic that is occurring because people are still earning some money while they are at home. Sunak has tried to make sure that the majority of workers are getting some of their salary, but as he has stated, not every job can be saved.

Everyone has been affected by COVID-19 but the furlough programme has positively helped society because it has kept people paid and has made a major difference in the way businesses work.

Comments (16)

  • Olivia-Avatar.jpg Olivia @ the BNC
    17 Nov 2020

    Excellent research has gone into this post, idealistic_editor. Well done! Not everyone is as positive about the furlough scheme and in some countries they haven't used one, as they think it is bad for the economy. Can you think of reasons why furlough might NOT be a good idea, or find out what some alternatives might be?

    Reply to this comment
    1. Bruntcliffe-logo-250x250.jpg idealistic_editor | Bruntcliffe Academy
      Olivia @ the BNC's comment 01 Dec 2020

      Furlough is not a good idea because it may make some people not want to go back to work and people would just be earning money for staying at home.

      Reply to this comment
  • Michael-Faraday-logo-250x250.jpg decisive_redcurrant | Michael Faraday School
    17 Nov 2020

    Could you explains what furlough mean.

    Reply to this comment
    1. Olivia-Avatar.jpg Olivia @ the BNC
      decisive_redcurrant's comment 17 Nov 2020

      Furlough is when a business has closed due to the pandemic and so people don't have jobs to do, but they are paid some of their salary by the government until the business reopens.

      Reply to this comment
    2. Olivia-Avatar.jpg Olivia @ the BNC
      decisive_redcurrant's comment 17 Nov 2020

      Furlough is when a business has closed due to the pandemic and so people don't have jobs to do, but they are paid some of their salary by the government until the business reopens.

      Reply to this comment
  • Michael-Faraday-logo-250x250.jpg decisive_redcurrant | Michael Faraday School
    18 Nov 2020

    Hi there idealistic_editor I just want to say I loved reading your post there amazing and I can tell you put in 100% into making them for us to read! Here is my opinion on why we shouldn't have furlough!!
    In my opinion, I find furlough a very bad and partisan thing to do because its not fair to others and its also not fair to me in my opinion. After asking my mum what furlough means she explained to me what it meant and found a huge problem with that.
    What the problem was it was that people have to get paid by the government during the pandemic.
    This is not right because people work for there money, people earn the money and now because of the pandemic now there getting such small pays from the government.
    Imagine a cafe owner earns roughly around £120,000 a year right but now imagine our Prime Minister says that cafe owners are no longer allowed to work and they will be getting a furlough from now on You never know that furlough that the government will give out could be around £5,000 every 2 months.
    It not fair in my opinion, because they work for the money and now because they cant anymore they can get as much money as to what they were getting before.
    Hope you understand what I mean idealistic_editor

    Really well done on you posts idealistic_editor your so good at them keep on trying and keep on being amazing!!!
    Hope you liked my comment
    decisive_redcurrant
    Have a lovely day

    Reply to this comment
    1. Arjan Bains.jfif EXPERT: Arjan Bains, Senior Audit Associate @ KPMG
      decisive_redcurrant's comment 21 Nov 2020

      Hey Decisive-redcurrant.

      It's clear you have strong views on the furlough scheme! Well done for backing it up and your example was a really easy way of understand your view.

      I wanted to explore the idea of "fair" with you, just for thought. I'll try to follow your lead and use an example to demonstrate.

      Imagine if somebody broke their leg, and consequently needed a cast as well as a wheelchair to move around. If I (with two working legs), saw this and complained it was unfair that I didn't have a wheelchair, would that be right? Especially if I helped to pay for the wheelchair through tax!

      Now, there's not a right or wrong answer to this, it depends on the person and their own views. I would say this could be compared to the furlough situation. Although (thankfully) nobody's legs have been broken, the national lockdown meant that Cafes had to shut and so that cafe owner had no choice but to stay at home. Of course, the cafe owner and its employees still need to pay the bills and eat food which cost money, so they may be in need of some support, which the government decided to provide (through furlough and some other support for businesses).

      My question to you - what do you think the role of the Government should be to its citizens? Should it just uphold law? Should it provide aid to those who need it? I'd love to hear your thoughts but it's a big question so don't worry about replying. It's more just to think about :)

      Arjan

      Reply to this comment
  • Upton-Cross-logo-250x250.jpg discreet_drum | Upton Cross Primary School
    19 Nov 2020

    What are we supposed to write in the final piece?

    Reply to this comment
    1. katie.jpg Katie @ the BNC
      discreet_drum's comment 20 Nov 2020

      Wait and see in Sessions 5 and 6, discreet_drum!

      Reply to this comment
  • Hammond School logo active_guava | Hammond Junior School A
    25 Nov 2020

    Hi active_guava hear I just wanted to say how blown away I was when I read you post it was so factual and I could tell you put a lot of work into it to make it so great.
    I just wanted to ask if you thought how this might of had a bad affect on the owners of the company that has had to furlough so many employees?

    Reply to this comment
  • tolerant_trumpet | Whyteleafe School C
    30 Nov 2020

    Furlough has affected many peoples jobs in many different ways.For example my Father was put on Furlough for a month and it really affected his work place and how he worked.I believe if the furlough goes on any longer than it already has Many millions of people and their work place.I think we should end the furlough right now and any people who can work from home can work from home and people like supermarket workers and people who work in places where you can't work from home to go into their workplace.
    Many thanks
    tolerant_trumpet

    Reply to this comment
  • funny_coconut | Whyteleafe School C
    30 Nov 2020

    I don't think furlough is good because also if your single at home and you were on furlough, you wouldnt have much to do. Especially in covid 19. You could suffer from sadness and loneliness. People should be able to keep busy.

    Reply to this comment
  • Lyons Hall Primary School forceful_moose | Lyons Hall Primary School C
    04 Dec 2020

    Yes they do effect jobs because no one was earning enough money

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