New figures released by HM Revenue and Customs (HMRC) show that as of the end of December 2020, 13% of workers are on furlough, and being supported by the coronavirus job retention scheme.
Workers on Furlough
The new figures released by the HMRC show that:-
- As at the 31st December 2020, 3,824,400 workers were on furlough, which equates to 13% of the UK workforce
- 36% of employers had at least some of their staff on furlough
- Those employers with 250 or more employees had the most staff on furlough with 1.12 million
- The numbers of workers on furlough are down from the 30th November 2020, when 3,868,200 were on furlough. However, they are well up from the 31st October 2020, when 2,399,600 were furloughed. The peak of the furlough scheme came on the 8th May 2020, when 8.9 workers were furloughed.
- The group of workers with the largest numbers on furlough are 18-24 year olds, who make up 17% of all workers furloughed. There are over 1 million workers in hospitality furloughed, and 0.7 million in retail.
The numbers of workers furloughed in January 2021 are expected to have increased with the new national lockdown, and the closure of schools.
Extension of the Furlough Scheme
As we highlighted in a recent article, the Confederation of British Industry (CBI), the British Chambers of Commerce (BCC), and the Chartered Institute of Personnel and Development (CIPD), have all called for the furlough scheme to be extended, with the CIPD suggesting that it should be extended until the end of June 2021.
Without an extension, and a more gradual winding down of the furlough scheme, the Resolution Foundation predict that there will be a surge in unemployment when the scheme ends at the end of April 2020.
Charlie McCurdy, on behalf of the Resolution Foundation, states: "The Job Retention Scheme has been a living standards lifeline for millions of workers, with three-in-ten private sector workers furloughed at the peak of the first lockdown. And with the UK back in lockdown, over four million employees are likely to be on furlough right now. The winding up of the scheme in just three months’ time is expected to cause a fresh wave of unemployment. It’s vital therefore that the Chancellor ensures a flexible transition out of the scheme, in order to avoid millions of workers simply moving from furlough straight into unemployment."
Budget Announcement
The Chancellor of the Exchequer, Rishi Sunak, is forecast to announce an extension to the furlough scheme in the Budget on the 3rd March 2021. According to Bloomberg, the "Chancellor of the Exchequer Rishi Sunak is drawing up plans to extend support for U.K. jobs in the months ahead as the pandemic lockdown continues to damage businesses and threaten a surge in unemployment, according to people familiar with the matter….The exact form of the measures is expected to be announced in the March 3 budget and will depend on how the Covid-19 pandemic evolves over the [next] six weeks."
Nevertheless, the CIPD believe that an announcement of a furlough extension should be made much earlier. They argue that: "The furlough scheme has been a lifeline for thousands of organisations, helping to protect jobs and keep businesses afloat. However, [given] this latest wave of the pandemic……businesses need certainty now on what support will be available to them in the months ahead. Our survey shows that many want the furlough scheme to extend beyond April, but the Chancellor has said that this won’t be reviewed until March at the earliest. Businesses cannot wait that long for certainty, they need a clear indication of Government support to June at least and they need to know this in good time. To delay this decision unnecessarily risks losing viable jobs and increasing redundancy costs for employers, which can amount to thousands of pounds."
