The end of Furlough... What next?
By: Kayleigh, redwigwam
The end of furlough is in sight, but what does that mean for people who face being made redundant?
As we know, the Job Retention Scheme was put in place last year to provide working people with a form of income while their places of work were forced to closed due to Covid-19 and the lockdowns that were mandated due to this. This meant workers were placed on furlough, which refers to a temporary leave of absence from work.
Originally the scheme was only due to last for around 3 months and finish at the end of June 2020, but as the pandemic situation has been unpredictable, the furlough scheme has had to be extended 5 times. The government have been paying 80% of wages for people on furlough up to the cap of £2,500 and employers have had to pay NICs (National insurance Contributions) and pension contributions.
From the 1st of August to the 30th of September (the date that the furlough scheme is now due to end), the government are paying 60% of the wages of people on furlough, and employers are having to pay 20% of wages plus NICs, pension and holiday pay.
The job retention scheme is estimated to have supported 11.6 million workers in the time it has been running for, however this scheme cannot run forever, and it seems that come the 30th of September, this will definitely be the end.
Unfortunately, it is being predicted that this will mean there will be a rise in unemployment as not all companies will be able to afford to keep all of their staff, and some will have to be made redundant. There are some sectors that are still unable to operate at full capacity due to ongoing disruptions, for example, the travel sector is still being impacted by the traffic light system and isolation periods.
So this could mean that we see high levels or redundancy in this sector - only time will tell.
So, what comes next for the people who lose their jobs?
There is currently a staffing shortage across some sectors that have been caused by recent circumstances. This includes the obvious impacts of Covid which have led to changes in shopping habits. There has been a surge in online shopping over the last 18 months which has created huge demand in the warehouse and logistics industry.
The hospitality industry has also been hugely affected by a number of factors including Brexit, which has meant that a million people have left the UK in the last year as it has become more difficult for them to obtain visas.
There is also the ‘pingdemic’ which refers to businesses being left struggling for staff due to people having to isolate, having been pinged by the NHS track and trace app. The hospitality industry has also lost staff as some people have decided to change careers and take another job whilst on furlough.
This all means there are plenty of opportunities for people who are made redundant to find work in these industries which are now in desperate need of staff. If you are one of these people, signing up to redwigwam could be the solution you are looking for.
We currently have plenty of work in warehouse and hospitality, plus we have jobs in other sectors too. We offer flexible work so that you can choose roles that fit around any other commitments you may have. Since we have a variety of jobs, if you’re not sure which direction you want to go in you can try different roles to see what you like best.
You can gain new experience and add to your skill set, and you can complete our e-learning modules to add to this too.
We offer fast pay and referral bonuses if you refer a friend or family member to us too. Sign up to find out what work we have in your local area at the moment.