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Furlough numbers at lowest this year

Emma Lunn
Written By:
Emma Lunn
Posted:
Updated:
03/06/2021

The government says its Plan for Jobs is working with 1.3 million employees moving off furlough in March and April.

The number of workers furloughed has fallen to 3.4 million, the lowest level this year, according to government statistics.

The figures show that more than one million fewer employees accessed the Coronavirus Jobs Retention Scheme in March and April, with some of the biggest falls in the under 18s and 18 to 24 age groups.

Since the start of the pandemic, more than 11.5 million employees and 1.3 million employers have been supported by the furlough scheme.

Figures also out today also show that 2.8 million people have benefitted from the Self-Employment Income Support Scheme (SEISS) which has provided more than £24bn in support.

The government says are also other reasons to be optimistic about the outlook for the labour market as ONS survey results estimate that the number of employees on furlough fell even further in early May.

Chancellor of the exchequer Rishi Sunak said: “Today’s data is another welcome sign that our Plan for Jobs is working and that the route we have taken is the right one. These figures show the scheme is naturally winding down as people get back to work and take advantage of the opportunities out there in the jobs market.

“We’ll continue to support those who need it through to September but I am hopeful that we’ll see more people moving back in to work as we continue on the road to recovery.”

The furlough scheme is due to run until the end of September. The government is taking a tapered approach, with employers starting to make a contribution to paying their employees who are still on furlough from next month.

As the economy reopens and demand returns, the government will ask employers to make a contribution of 10% towards the cost of paying for unworked hours from July. This employer contribution will increase to 20% in August and September.

Myron Jobson, personal finance campaigner at Interactive Investor, said: “The weaning off process has well and truly begun, with many Britons returning to work following the easing of Covid restrictions in recent months. But there is still a long way to go to get the remaining 3.4 million back to work before the scheme is wound up at the end of September.

“The harsh reality is not everyone will have jobs to return to as while the furlough scheme protected businesses that, through no fault of their own, were forced to shut up shop during the government enforced lockdowns, it also protected businesses that were already in a precarious state.

“The furlough scheme has been a resounding success in keeping a lid on unemployment during the pandemic. However, there will without question be a price to pay for keeping millions in a job which is likely to hit our back pocket one way or another through taxes rises, spending cuts or a mixture of both.”