How long do you think the Furlough Scheme will realistically last?

[DreamChaser23]

Indefinitely until a vaccine is found?

I think it will probably have to be indefinitely. The other alternative is putting people on UC which might be less but still costly.

Agreed re the amounts. £2500 is a tidy sum. Max should have been around £1000

You know for many the sum received is nowhere near £2500. Vast amount of hospitality/retail is on or near minimum wage so people are receiving 80% of minimum wage.

Which is still the subject to tax/NI/pension deductions.

(I am not insulting the furlough scheme at all and I’m massively grateful for it, the company I work for would have had to make 750 people redundant without It). I’m merely trying to point out it wasn’t a guaranteed income of £2500 for many people.

End of June. My husband has just returned to work after being furloughed. He was capped at £2,500 per month which is about £11k a year more than minimum wage. Ridiculous to think that the government paid him more to sit on his arse at home than someone working 40 hours a week as a carer. He has lay off clauses in his contract so could have been laid off at a fraction of the cost.

Both furlough or Uc are unsustainable long term for millions of people. Where is the money coming from? I guess some won't be eligible for Uc due to being over the savings limit ?

brentwood - I agree totally ridiculous.

I'm reckoning end of June as currently stands for all then it'll only be for businesses that haven't been given the green light to open again.

If the current staffing levels are too great for the business to profit then they'll be a proportion made redundant. That's not the governments problem because there's UC if you are made redundant.

Furlough will not be forever.
It isn't means tested for one, so you've potentially got alot of people whose partner is still working, or they have savings, being paid by government to sit at home.

It cannot go on forever, people will wither go back to work or be made redundant.

Then you can either claim UC or get another job like the rest of us.

@Babyroobs

Furlough is unsustainable long term for the government too.

brentwoodbaby this is the madness of the clap for NHS, please clap but pay people better wages!

This benefit was needed to help us through this however it was a holding circle to keep people at home and support those most in need.

Imo some people have taken it in the wrong light and taken advantage VB et al.

We will ALL be paying for this for YEARS!

I think it will need to continue for those business mandated to close - whatever they may be. Hotels, tourism, pubs, restaurants, childcare...if the government wants those businesses to survive they'll need further support. They'll also probably need a second batch of grants to cover overheads if they're planning a very long slow unlocking

As a full time hospitality worker, I would hope I receive furlough pay until the government states we can reopen.
I am receiving 80% of minimum wage, still with all usual deductions. That's not even the new minimum wage that came into effect on 1st April as it's worked out on previous earnings.

I think it will end or be restricted once the government advises employers to reopen. Which I think the UK government will want to do towards the end of May. (And then we'll probably end up with a new higher peak in infections, joy of joys).

As I see it the furlough scheme is meant to support both employers and employees. By furloughing their staff and the government paying most of the salary, when businesses can reopen they can quickly recall everyone to work. They don't have the expense and loss of talent of redundancies follower by the expense and delay of new hiring.

And of course the government doesn't want a massive spike in unemployment. That would create a big drop in consumer spending and rise in failure to repay debts. It would also result in either a lot of jobseekers travelling about the country for interviews and work, or a lot of jobseekers very very angry at being paid a pittance of Universal Credit and being prohibited by law from such travelling. (Oh, and a major collapse of the UC sytem).

It's all about placing the economy for a rapid bounce back, and trying to prevent this being the start of years of recession. So ending it while continuing current lockdown restrictions is I think unlikely.

We’ll know more in two weeks time because if there isn’t an extension announced for it extending after the end of June, larger employers will have to start the 45 day redundancy consultation period ready to make employees redundant at the end of June.

@BBCONEANDTWO
@TJH130

How/why do you expect people to suddenly live on £200 pw/£1000 pm when the GOVT have told them they are not allowed to work??

80% was reasonable.

Some companies should not have been entitled to it Green/Branson BUT. It's their employees we need to support.

I can see them telling people they need to move over the UC. That's going to cause a LOT of deaths because people who shouldn't be going to work, will be. And lots of people commuting etc.

Yes,I agree it can't go on forever, but how are we going to help/protect the vulnerable -say a 60 yo Male, with say a stent & and HBP ?

A teacher with diabetes?

The vulnerable - not the shielded

I think -throwing them to the wolves springs to mind. Watch the 2nd peak & death rate skyrocket if you stop the financial support and the will also impact the economy.

I work in a restaurant, not getting 80% because tips usually make up 30% of my earnings and they're not included.
I think furlough will end in june but hopefully longer for us if we're ordered to stay closed.
I'll start looking for another job in the next couple of weeks, hopefully something I can fit around my child. Its worrying.

@rosyribbon

80% of minimum wage is 12,800 per year (on 37.5 hour week). You should only be paying tax on £300 pounds of that, as the threshold is £12,500 per year. So you’ll pay 20% tax on £25 a month - which is £5 per month income tax. If you are paying more then please phone HMRC.

@brentwoodbaby
@Babyroobs

• We need a "nudge" to get those businesses back open who are allowed to and workers back to work who aren't shielding.

It's crazy that businesses which didn't need to close are being funded to stay closed by means of the furlough support. We need to get all businesses that are allowed to open, to re-open*

But that was the company's lack of morals, not the Govt. the Govt/people didn't have the luxury of time or the ability to see who had that in their contract & who didn't. Either we made it available to all or we waited FAR too long while they scrutinised every detail.

Companies should have have had more morals

@TazSyd
I mentioned I was still paying usual deductions.That includes NI and pension.I wasn't questioning my tax code, if that's how it came across.

@rosyribbon

Ah ok. I was just saying because HMRC put me on the wrong tax code once and they were really helpful when I phoned them. I had a cheque two weeks later.

For some reason, they had me down as having a higher rate company car (I wish) when I didn’t have one at all and were charging me a lot of extra tax for the imaginary car.

Incredibly “ Companies should have have had more morals”

But the rules are so vague, they were in a real quandary. Necessary vs unnecessary, plus having staff being to be furloughed and saying it was for their safety.

Everything the government has said has been contradictory. It’s a really tough spot for business to be in.

Government can't keep paying out so my initial reaction would have been end June. However, there are some businesses that won't be able to operate for many months, no point in furloughing staff for three months, then business having to pay or let them go.

I’m hugely grateful for the furlough as, for my circumstances, it’s worked well. I work in the tourism industry, part time, which gave me enough flexibility that (between DP, myself and PIL) 3 yo DS didn’t need childcare after starting school nursery last September.

Had it been 80% of my contracted hours I would have been up shit creek, but it’s worked out on actual earnings, which were higher due to over time. As I work 40 minutes away from home, the 20% drop actually equates to my petrol, so in theory I’m breaking even.

I live in North Wales and can’t see the welsh government being happy about starting tourism businesses up until late July/August. DP also works in tourism but is self employed, so we are both hoping the furlough scheme is extended for tourism workers.

At the back of my mind, I’m mindful that tourism might not be the beet industry for us anymore. Before I had DS I was a teacher and although I never wanted to teach again, it appears as though coronavirus might end up forcing my hand!!