Expanding furlough

A first step in expanding government COVID-19 income support schemes.

This plan looks at what the UK can learn from the German and French income support schemes during the pandemic. It finds that these systems include workers more than in the UK which is something we should try to emulate. Our paper also concludes that we should:

  • Allow employees to access the furlough scheme if their employer refuses to furlough them. This would also include a backdated payment for those employees that were originally refused access to furlough.
  • Increase the £50,000 cap on income to £100,000 and then taper off support payments up to £200,000. Also backdate payments for those who were earning above £50,000 and then missed out on the last rounds of SEISS payments.
  • Lower the rule that means the self-employed need at least 50% of their income to come from self-employment to 20%.
  • Those people who spent time on maternity leave causing them to receive smaller SEISS payments should not have these periods of leave included in future calculations. They should also receive backdated calculations if pay during past rounds of the SEISS was reduced as a result of time spent on maternity leave.

News coverage

‘Government must act to help up to 800,000 people who have been refused furlough’

“The Centre Think Tank has produced a draft white paper with solutions that it believes would help to provide financial support…” (read more here).

Paper provides options to ease anguish of those excluded from Government support – Greg Wright

“This enlightened route has been chosen by the Centre Think Tank which has compiled a draft white paper which makes the case for expanding the furlough scheme…”(read more here).