The UK Government announced earlier this month that it would begin winding down the coronavirus furlough scheme intended to secure jobs amid the COVID-19 pandemic.

The new survey of 697 company directors revealed that half of those using the Job Retention Scheme for staff said they could provide 20% or above toward furloughed workers’ full-time salaries between August and October. However, a quarter said they could not afford any amount.

More than third of those using the scheme said they would bring the majority of their furloughed workers back part-time if the scheme allowed it. Less than one in 10 company directors said they wouldn’t bring anyone back part-time.

Under changes to the scheme, which will run until the end of October, employers will have the flexibility to bring furloughed employees back part-time whilst still receiving support.

The majority of the directors surveyed said they would make use of shorter minimum furlough periods if the scheme allowed it. Currently, workers must be on furlough for at least three weeks.

One in three business leaders said financial support for adjusting workplaces would help get them operate safely under social distancing.

Jonathan Geldart, director general of the Institute of Directors, said: “The furlough scheme is protecting millions of jobs. Business leaders know that the Government’s support can’t be infinite, but the ugly truth is that if there’s no money coming in the door, many firms will be forced to make difficult decisions come August.

“Directors will be fighting tooth and nail to avoid this scenario. Companies are innovating, creating new ways of working, and launching new products. There is hope that as more areas of the economy return to work, more companies can keep people on board. However, despite best efforts, many firms simply won’t be able to work at full capacity for the foreseeable future, and there’s no magic wand to lift demand back up again.

“The Government must soften the blow by introducing as much flexibility as possible into the furlough system. The more flexible the scheme is, the better firms can recover, and the fewer jobs will rely on state subsidy. Being able to bring people back part-time will help a lot of companies, but there are other changes business leaders would like to see, such as reducing the minimum furlough period.

“With the prospect of job losses, and businesses struggling to create new roles in the months ahead, the spotlight will be on our training system. Businesses are eager to work collaboratively with government to lift skills across the board.”

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