TUC calls on government to launch ‘daughter of furlough’

The Trades Union Congress (TUC) is urging the government to consider implementing a permanent short-time working scheme as a “post pandemic legacy” and to scrap its plans to end the furlough scheme at the end of next month.

It explained that a ‘daughter of furlough’ would help to protect those in work during periods of economic change.

While the furlough scheme is “far from perfect”, the TUC shared that it is one of the major successes of government policy during the pandemic.

With this in mind, the body is urging the government to build on the furlough scheme and “not throw away its good work,” by introducing a permanent short-term working scheme.

In a new report dubbed Beyond furlough: why the UK needs a permanent short-time work scheme, the TUC citied benefits for workers, firms and government if additional support like this was introduced.

The TUC also predicts that the UK economy will likely face risks in the future, such as climate change, the transition to net zero, development of new tech and new variants or another pandemic.

Therefore, a scheme like this would also produce significant savings on redundancy, training and hiring costs, as they allow businesses to keep skilled workers on their books.

The report also pointed out that the UK is an “anomaly” among other developed nations in having no permanent short-term working scheme to deal with periods of industrial disruption and demand.

‘Daughter of furlough’

Frances O’Grady, general secretary at the TUC, explained that setting up a ‘daughter of furlough’ that could offer additional support would help “provide certainty to workers and firms through future industrial change" and "would be a fitting pandemic legacy".

O’Grady continued: “In a changing and unpredictable world – as we battle climate change and new technologies emerge – a permanent short-time working scheme would help make our labour market more resilient and protect jobs and livelihoods.

“Furlough has been a lifeline for millions of working people during the pandemic. Now is the time for the government to build on the success of furlough with a short-time working scheme – not throw away its good work.”

Furlough ending

These warnings from the TUC come six weeks ahead of when furlough is set to end, where employers will be legally obliged to start consulting on planned redundancies with their staff.

Speaking on this, O’Grady said: “An abrupt and premature end to the furlough scheme will needlessly cost jobs and harm our economic recovery.

“Instead of pulling the rug out from under the feet of businesses and workers, the chancellor must extend the furlough scheme for as long as is needed to protect jobs and livelihoods.”