More than one million workers came off furlough in the four
weeks between the end of April and the end of May alone, which
coincided with the start of restrictions being lifted and
non-essential retail, restaurants and pubs reopening.
New figures published today show 2.4 million people moved off
the scheme between the end of February and the end of May as
businesses reopened.
2.4 million people remain furloughed or flexi-furloughed down
from a peak of nearly 9 million at the height of the pandemic
in May last year.
Chancellor of the Exchequer said:
“Our Plan for Jobs has supported people’s jobs and
livelihoods throughout the pandemic and it’s fantastic to see
so many people coming off furlough and into their workplaces
with our restaurants, pubs and shops reopened.
“These figures show what we always hoped would happen –
that the scheme is naturally winding down as the economy
reopens, but continuing to support those businesses and
employees that need our help.”
Today's ONS Business Impact of Covid-19 Survey show numbers may
have fallen even further – with estimates that between 1.3 and
1.9 million people are still on furlough.
These figures reinforce other positive signs about how the
recovery is progressing. The number of employees on payroll is
at its highest level since last April, business and consumer
confidence have improved significantly and economic growth is
outperforming expectations.
The figures show the largest reduction in the hospitality,
retail and accommodation sectors, with nearly 180,000 people in
pubs, bars and clubs alone returning to work between April and
May.
Furlough was extended until September to allow for businesses
to adjust after the end of the Roadmap and to bring people back
to work.
Now, as the economy begins to reopen and demand returns,
employers are being asked to contribute more and from today,
they will contribute 10% towards the cost of paying for
unworked hours.
This employer contribution will increase to 20% in August and
September, before the scheme closes, with the Plan for Jobs
still in place to provide support, including traineeships and
more work coaches to help people find jobs.
New statistics for the Self Employment Income Support Scheme,
also published today, show more than £25bn has been claimed to
date in support for the self employed.
350,000 properties have paid no business rates for 15 months
thanks to an unlimited rates relief between March 2020 and July
2021. Over 90% of businesses will now be able to benefit from a
66% reduction in business rates bills until March 2022
