The coronavirus pandemic (COVID-19) detrimentally impacted not just public health, the NHS and other vital public services, but the economy as a whole. The impact of the “lockdown” was that overnight a lot of businesses closed or experienced unparalleled revenue shrinkages. This placed jobs at risk. If employers could no longer generate revenue then they could no longer keep on employees. The spectre of redundancy loomed. In response, the government introduced The Coronavirus Job Retention Scheme (the ‘Furlough Scheme’). Instead of mass redundancy, businesses could retain staff, as an alternative to redundancy. By placing an employee on “furlough” they could retain them, paying their salary and in return receive a reimbursement from the government for 80% of the employee’s monthly salary, subject to a maximum cap of £2,500 per month.
https://www.hja.net/furlough-fraud-and-the-finance-act-2020/