Furlough payment: How does flexible furlough work?

FURLOUGH is a lifeline for millions of workers, providing salaries for those who cannot work their usual hours during the pandemic. But how does flexible furlough work?

Boris Johnson grilled on protecting businesses when furlough ends

The Government introduced furlough as a means to keep workers employed and receiving money despite the lack of work available due to the pandemic. In total 80 percent of wages, up to £2,500 a month, are paid by the Government to those on furlough in a workplace impacted by coronavirus.

Figures from the Office for National Statistics (ONS) found nearly nine million people had to borrow more money because of the coronavirus pandemic by December 2020.

The data also showed the proportion of people borrowing £1,000 or more had increased from 35 percent to 45 percent since June 2020.

The ONS said the "labour market shocks" associated with the pandemic had been felt more by young people and the lowest paid.

They said those aged under 30 and those with household incomes under £10,000 were around 35 percent and 60 percent respectively more likely to be furloughed than the general population.

Read More: Can your employer REFUSE furlough?

Furlough flexible

Furlough: How does flexible furlough work? (Image: GETTY)

Furlough payment: Keir Starmer

Furlough payment: Labour leader Sir Keir Starmer has demanded 'flexible furlough' for working parents be put into law (Image: GETTY)

Furlough has now been extended to April 30, 2021, with employers able to claim for hours not worked.

The scheme can also be used to help parents who cannot work now schools have closed once more.

Four weeks into the third national lockdown, some have been calling for more to be done for those struggling due to the pandemic.

Labour leader Sir Keir Starmer has demanded “flexible furlough” for working parents be put into law under the current lockdown measures.

Furlough payment: Rishi Sunak

Furlough payment: Rishi Sunak may announce an extension to furlough in March's budget (Image: GETTY)

How does flexible furlough work?

Flexible furlough was introduced by the Government in July and means employers can bring furloughed employees back to work on a part-time basis.

Individual firms can decide the hours and shift patterns their employees will work on their return, so they can decide on the best approach for them - and will be responsible for paying their wages while in work.

The Government will then pay the rest of the employees' wages under the furlough scheme.

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A new report by the Institute of Employment Studies (IES) has called on flexible furlough to be extended to the autumn to protect low-paid workers.

The study found low-paid workers were “twice as likely” to have lost jobs during the pandemic.

Mubin Haq, chief executive of Standard Life Foundation which funded the study, said these findings highlighted how the pandemic had affected those on the lowest incomes.

He said: “This report provides further evidence of the pandemic’s severe impact on the low-paid.

Furlough payment: Furlough changes

Furlough payment: Changes to Furlough scheme explained (Image: EXPRESS)

“Lost jobs, reduced hours, insecure work, meagre sick pay. We have seen some progress but culture and practice remains poor in too many places.

“More action on incomes, protecting rights and employment support is needed if we are to ease the financial pain and insecurity many families are facing.”

The report concluded ministers could better support low paid workers through the crisis by extending “flexible furlough” until the Autumn.

It also called for the continuation of the £20 increase in Universal Credit, a reform to sick pay and investing in skills and improving protections for workers.

Chancellor of the Exchequer Rishi Sunak is due to give his budget on March 3, and could extend furlough for the fifth time.

Bloomberg reported a source close to Mr Sunak had told it “support for jobs isn’t going to end” while businesses cannot open during lockdown.

Mayor of London Sadiq Khan has also urged for an extension of the furlough scheme and a continued business rates holiday past March.

He said: “Current plans to end the business rates holiday in March and then the furlough scheme in April create a huge financial cliff edge for employers.”

“Without the certainty that support will remain in place for as long as it is needed, many more businesses could decide to cut their losses and close permanently now.”

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