The furlough scheme must be reformed to avoid mass unemployment Anneliese Dodds
about 4 years in The guardian
Expecting employers to pay up to 40% of staff wages will result in a second wave of huge job losses
Anneliese Dodds is the shadow chancellor of the exchequer
See all our coronavirus coverage
Coronavirus – latest updates
The job retention or furlough scheme, created by the government, business representatives and trade unions working together, has had no parallel in UK history. It has kept six million people in work, and backfilled seven and a half million jobs. Without it, one in three businesses say they would have had to lay off staff; and many workers would have felt compelled to try to continue to work, despite public health guidance requiring them not to.
No one imagines that the scheme can continue in its present form indefinitely. While a worthwhile investment to support the economy and ensure millions aren’t without a wage, it is a very costly scheme. It is also inflexible, requiring workers to completely remove themselves from work. And the “missing” 20% of earnings for those who have been furloughed has pushed many below even the minimum wage. Continue reading...
Who is popular today?
