Furlough to be wound down in July

[Alex50]

We all need to be getting back to work or our jobs and livelihoods are going to disappear.

www.theguardian.com/world/2020/may/05/rishi-sunak-preparing-to-wind-down-furlough-scheme-from-july

Why did they go for furlough instead of basic income?
Surely it can't be a case of 'they didn't think it through properly'??🤦🏼‍♀️
Surely 😳

It would have been far easier and fairer to give every adult an identical, set amount each month, or in a one-off payment to tide everyone over. Plus, it would have helped the economy because people with the lowest incomes would spend all of that money, paying VAT on some things, and also keeping businesses alive.

They couldn't have afforded to pay everyone the top end, and paying everyone a lower amount (e.g. putting everyone on minimum wage or even UC) would have meant a rash of private renters, for example, suddenly unable to pay rent or meet committed outgoings. In much of Europe this is why unemployment benefits start at a % of previous salary. It's not fair but unfortunately none of this is. However I do think it should make us reconsider UC, people who lost their jobs and had to wait weeks for a pittance in January were just as deserving as those of us losing jobs /furloughed now on far more generous terms.

In terms of boosting spending, I do think they should do a cash payment, perhaps - but not until lockdown is reduced. As it is, the cash would be spent primarily on the businesses that are already doing ok, like supermarkets or Amazon. Waiting until things are more open will mean that many of the businesses now shut down will share the benefit.

I don't think they expected so many big companies to take advantage or for firms which saw a bit of a downturn but could have carried on for a while to use it to the extent they have.

I think there a lot of businesses who have used it legitimately, who would have managed to retain staff without it, short term and more businesses would have found ways to adapt and carry on if this hadn't been on offer.

But it must always have only been intended to be a very short term measure. I'm surprised it's going as far as July TBH, we must surely have seen some lifting of restrictions before the?

I'm certainly not getting 80% of what 'I'm accustomed to'. Having done 12.5 hours a week for half the tax year then 25 hours a week for the other half of the tax year, my furlough pay is actually only 55% of the wage I've been receiving for the past 6 months. A lot of people will be in this position, especially women who did lower hours because they have young children then upped their hours when their child went into pre school last summer or January just past and stayed in the same job.

You're only really getting 80% of your 'normal' or 'recent' wage if you're on a salary, just recently started your job, switched jobs mid tax year and have been earning about the same or just came off maternity leave.

Of course I'm grateful to be getting 55% of the wage I've been receiving for the past 6 months but I am bit sick of hearing things like 'they're getting 80% of their wage', 'they're getting almost full pay to do nothing' etc. It doesn't actually work out that way for a lot of people and it certainly won't work that way for any self employed person who only started earning a decent amount in the last year or so

Well, 100% of my work went for the next year. it took a couple of hours for all the cancellations to come through.
Over 30 years in business and no sign of when it will return.
it's not just those who have lost the work it's those that rely on these businesses themselves.
E.g You look at theatres, it's not just staff, it's suppliers of all manner of goods and services. It's the acts, musicians, before you include staff.
The same with restaurants and pubs, staff and suppliers.
I'm looking for work, but there isn't going to be any.
So, once furlough stops I'm pretty fucked unless I come up with an alternative.

I think the furlough scheme was unfair. I've gone from a full time salary to benefits only because my employer is still working and said they were unable to furlough me.

The guidance says shielded people can be furloughed but it's up to the employer to follow this, so mine decided not to. They won't let me return to work either as they know I have a shielding letter so it's too much of a risk having me in work dealing with the general public.

I'm a single parent and I'm struggling badly financially now. I feel very let down by the government and think it could have been handled better for the clinically vulnerable who have been told to shield.

@YorkshirePuddingsGreatestFan

That is awful for you. Yes, the government should be supporting the shielded. Have you tried writing to your MP?

@thetoddleratemyhomework yes I've written to my MP who also agreed I should be entitled to furlough but the way the guidance is written, employers have the choice. He has written to the chancellor on my behalf but nothing has been done about it.

Boris’s answer of getting people back to work without using mass public transport, is for there to be a huge uptake in cycling to work!

People with certain health conditions and over a certain age are going to discriminated against now i’m afraid. I do wonder in some ways the virus is very conveniently getting rid of the sick and old from society.

I am furloughed, and I dont want to be. I am ready to go back to work right away, but unfortunately this is not my decision.
This is a horrible situation indeed - lot's of people want to go back to work, but purely not allowed. The financial support will also stop, so what are we supposed to do?

a huge uptake in cycling to work
In that case we need proper provision for cyclists, safe cycle lanes etc

Furlough will be stabilised for sure, but will stay in place for sectors/places of work that are unable to reopen for social distancing.

If schools don't reopen fully than parents that have to stay at open will be still able to be furloughed.

They won't just turn off the tap eirher- can see something like July = 60% of wages, August =50%.

How many people can afford to live on 50% of their income? Businesses are not topping up (or some of them aren't). Employees who are forced out of work will be the ones that are punished here.

a huge uptake in cycling to work
In that case we need proper provision for cyclists, safe cycle lanes etc

Yep

This is a big one. I’d like to see more cleared routes into central London for cyclists

@kirinm - Alternative is mass redundancies as companies fold. Not sure punishment is the correct word - Its a fact we have to deal with. Hard times ahead no doubt

It’s right that it’s wound down in July, but paper says final decision to be taken.

@Discobar the government needed to act more quickly than they did and they need to take us out of lockdown soon. This isn't going to get any better until businesses can start functioning again.

I actually can't believe the number of people who want us to stay locked down indefinitely. I can only assume they are not financially (or mentally) affected by it all.

Personally, I'm at a stage where I'll accept the risk of catching covid-19. Rather that than lose my livelihood and home.

They’re will be thousands of people queuing up for one job, any job, even minimum wage jobs, employers will have there pick of candidates. I want to go back to work ASAP, I am willing to take a pay cut, as long as I can keep working to pay my bills. UC is useless, it doesn’t even help with mortgage payments.

I wish people would remember that furlough isn’t this payout of £2500 for everyone. Most people I work alongside are on minimum wage (hospitality, service charge is a massive wage top up). So they are facing 60% of minimum wage?

I'm pretty sure it was a maximum of 2500 gross wages. After tax, NI, pension etc and making it 80% I think it works out at around £1600.

@Abreadsandwich - it is 80% of your salary up to a gross figure of £2500. If your gross monthly salary is £1500 you're receiving considerably less.

Well, 100% of my work went for the next year. it took a couple of hours for all the cancellations to come through.
Over 30 years in business and no sign of when it will return.
it's not just those who have lost the work it's those that rely on these businesses themselves.
E.g You look at theatres, it's not just staff, it's suppliers of all manner of goods and services. It's the acts, musicians, before you include staff.
The same with restaurants and pubs, staff and suppliers.
I'm looking for work, but there isn't going to be any.
So, once furlough stops I'm pretty fucked unless I come up with an alternative

Exactly even "minor" concessions to social distancing etc, can have a knock on affect on so many jobs, many of which are almost invisible.
So one of the the first actions was cancelling football matches.(and other v large gatherings) The players and managers themselves I'm sure will be ok. Then you've got all the people who work at the stadium ....then the people who print the programmes or make (seasonal or dated) merchandise....then the local cafes and bars, mobile burger vans etc, coach, minibus and cab companies that take groups to football matches, concerts etc.
For the person going to the football match or concert, it might be a small (ish - depending on income) sacrifice to "just not go" to a concert or football match. For all the people dependent on that for income it's a massive deal.

@Abreadsandwich- it is 80% of your salary up to a gross figure of £2500. If your gross monthly salary is £1500 you're receiving considerably less

Yes I understand that but I was making the point that no one is actually taking home £2500. (Unless their employer makes up the difference)

@kirinm - When lockdown eases, many companies can't just bring staff back immediately - it won't work like that. Its gonna take months for revenue to be at sustainable levels to pay staff without folding.

@discobar I think we are coming from the same side. My point is ending furlough is going to ultimately end in redundancies. I agree that furloughing is not a long term strategy, but the alternative is millions of unemployed people.