Fact Service (September 2020)

Issue 35

Government continues furlough rundown

The Coronavirus Job Retention Scheme moved a step nearer its predicted end this week, as employers became liable to pay 10% towards the wages of furloughed workers. The scheme is due to close on 31 October, despite unions, industry figures and other organisations making reasoned cases for its extension, particularly in hard-hit sectors (see this and recent issues).

Since March the government has paid 80% of furloughed workers’ wages up to £2,500 a month. From 1 August businesses began to pay employers’ pension and national insurance contributions. Now, as of 1 September, the government’s contribution reduces to 70%, with the employer paying 10%.

Next month the government will pay 60% of wages, with employers expected to make up the remaining 20%, to be followed by the scheme’s closure at the end of October.

Some 9.4 million employees, working for 1.2 million organisations, have been furloughed at a cost of more than £30bn. According to the latest figures from the Organisation for National Statistics (ONS), 13% of the workforce – around one in eight – is currently on furlough leave.

In other economic news, the ONS reported that total online job adverts remained at just over half (55%) of the 2019 average for the third consecutive week, while footfall at retail locations continued to rise in the week commencing 17 August. Footfall in retail parks increased to 90% when compared with the same day a year ago, and in shopping centres to just under 70%.

https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/conditionsanddiseases/bulletins/coronavirustheukeconomyandsocietyfasterindicators/27august2020

https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme


This information is copyright to the Labour Research Department (LRD) and may not be reproduced without the permission of the LRD.