The end of furlough and its impact on Outplacement

The Government’s furlough scheme, which has supported 11.6m jobs since it began, is due to end on 30 September 2021.  It has helped prevent a feared unemployment rate of 1 in 10 (it’s currently less than 1 in 20) at an estimated cost of £66bn.  But what will be its impact on redundancy levels and outplacement considerations for businesses?

How is the furlough scheme changing?

Introduced in Spring 2020, to stop staff being laid off during the COVID19 pandemic, the furlough scheme had the Government initially paying 80% of the wages of those who couldn’t work, up to a monthly limit of £2,500.

From 1 July 2021, the Government contribution has reduced to 70% with employers required to contribute 10% and in August/September the Government contribution will drop to 60%.  In doing this, the Government hopes to encourage businesses to take back workers full time as the economy opens once more.

Many businesses are now asking questions that will affect their staff.  Is the furlough scheme going to be extended again?  It has been extended four times already and the Government has said it does not want to extend it again, meaning that many employers will have to make decisions about whether to take staff back or to make them redundant.

Will more people be made redundant?

The BBC has reported the results of a British Chambers of Commerce survey of 250 businesses that stated that 18% of them (almost one in five) are planning to make redundancies following the recent change in the furlough scheme.

If your business is making considerations about the future of your staff, Career Connect Outplacement can help them to create a better future by updating your employees’ job search skills and helping them to move forward in their careers much faster.  

Many employers are turning to outplacement to show employees at risk of redundancy that they care what happens to them after their employment ends.

To find out more about how Career Connect Outplacement can help your business and employees contact: