Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Collective redundancyCoronavirusLatest NewsJob creation and lossesFurlough

Two in five plan redundancies after furlough ends

by Ashleigh Webber 7 Jul 2020
by Ashleigh Webber 7 Jul 2020 Shutterstock
Shutterstock

Two in five (44%) organisations with staff on furlough say they will have to make some or all of their furloughed staff redundant when the scheme comes to an end.

With the government scaling down the support it offers via the Coronavirus Job Retention Scheme from August, a quarter of businesses are not confident they will be able pay an increasing share of the wages for furloughed employees, indicating many are likely to struggle over the coming months.

According to think tank Bright Blue,the majority (58%) have been topping up furloughed employees’ wages to 100% of their usual pay. This was more likely among medium (81%) and large (79%) businesses than small firms (59%).

Just under half (48%) using the furlough scheme expect to keep all furloughed staff on the payroll after the CJRS is pulled on 31 October, while 31% expect to make some job cuts; 9% expect to lay off most furloughed staff; and 3% expect to make all furloughed employees redundant.

The report, authored by Bright Blue senior researcher Anvar Sarygulov, says: “The social distancing measures have helped to stop the pandemic from running out of control, and businesses will benefit from the recent relaxations in the two-metre rule. But the threat of a resurgence continues to trouble businesses, with business leaders more likely to believe that demand for their trade will not return to normal for some time and that their business model is likely to be permanently changed.

“The government has already implemented extraordinary measures to address the Covid-19 pandemic. In the months ahead, they will have to effectively follow-up on current policies, to both contain the economic fallout from the crisis and to build the road to the recovery.”

Job losses due to coronavirus

Regional jobs analysis reveals towns hit hardest by coronavirus crisis

Thousands of redundancies announced across retail, hospitality and aviation

Many businesses expect to reopen their workplaces as soon as the rules allow (26%) or over the next six months (24%). Thirty-one per cent had remained open or have recently opened up.

But social distancing guidelines remained a problem. Only 23% of firms say they can operate normally and 13% are unable to operate at all.

The Bright Blue study involved an Opinium poll of 520 businesses, which was conducted between 18-24 June 2020.

The research was published as the Organisation for Economic Cooperation & Development (OECD) warned the UK unemployment rate could soar to 14.8% if a second wave of the coronavirus pandemic was to hit. The current unemployment rate is 3.9%.

However, if a second wave was to be avoided, the unemployment rate could still rise to 11.7% by the end of 2020 – which would be the highest level seen since 1984.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The OECD based its predictions on the accelerating number of UK organisations cutting administrative office jobs, at a faster rate than other European countries.

  Workforce planning opportunities on Personnel Today

Browse more workforce planning jobs

Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

previous post
Coronavirus is an opportunity, but also a risk, for occupational health
next post
Joblessness could reach 15% in second wave

You may also like

Bioethanol plant closure could lead to 4,000 job...

26 Jun 2025

Graduate jobs this summer ‘will be toughest since...

25 Jun 2025

Allianz to cut 650 jobs in the UK

19 Jun 2025

The employer strikes back: the rise of ‘quiet...

13 Jun 2025

Former employees of Wilko gain £2m payout

13 Jun 2025

Redundancies boost candidate availability at fastest pace since...

13 Jun 2025

20,000 employees agree to leave Volkswagen by 2030

5 Jun 2025

Volvo to cut around 3,000 roles in restructure

27 May 2025

Tribunal finds need for degree in redundancy selection...

14 May 2025

Construction workers win compensation claim against defunct employer

9 May 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+