Scale of jobs crisis emerges with 900,000 protected by Treasury
ALMOST 900,000 jobs have been protected by the Government’s furlough and self-employment schemes in Scotland.
New figures show that 75 per cent of self-employed people eligible to apply for the Chancellor’s self-employment income support scheme have done so, while 736,500 jobs have been covered by the coronavirus job retention scheme.
More than £455 million has been paid out to 155,000 self-employed people across Scotland up to June 30, with average claims totalling £2,900, while 30% of all jobs in Scotland have been covered by the furlough scheme.
Since the last set of figures were published, covering to the end of May, an additional 108,000 people have been furloughed and 9,000 more selfemployed people have applied for support. It
It comes as the British Chambers of Commerce has predicted 29% of firms were expecting to make redundancies in the next three months – the highest number on record.
According to a survey conducted by the BCC and jobs website Totaljobs, 28% of companies in the UK decreased the size of its workforce between
April and June, while 66% kept its workforce stable.
Both BCC andtotaljobs are now calling for a cut in National Insurance contributions required by employers to further protect jobs.
The survey asked 7,400 firms across the UK about their experiences and plans for the next three months.
It w as carried out prior to the summer statement, during which the job retention scheme bonus, kickstart scheme and apprenticeship schemes were announced.
Between now and September,
59% of companies are planning to keep their workforce numbers the same, while 12% say they plan to increase their staff.
BCC Co-executive Director
Hannah Essex said: “Our research demonstrates the Chancellor’s focus on protecting, supporting and creating jobs is exactly what’s needed to drive the UK’S economic recovery in the coming months.
“Many businesses are suffering from
The latest figures make stark reading, especially when compared to what we had grown accustomed to
a historic cash crunch and reduced demand, meaning firms will still face tough decisions despite welcome interventions made in the Summer Statement.
“The government should consider additional support for employers before the Autumn Budget to reduce the overall cost of employment and prevent substantial redundancies. Measures could include a temporary cut in employer National Insurance contributions and support to upskill and re-skill employees as businesses adapt to change.”
Totaljobs CEO Jon Wilson said:
“The latest figures make stark reading, especially when compared to what we had grown accustomed to in previous years. It is clear that business confidence is low, with many being forced to make difficult decisions when it comes to their workforce.
“However, the Chancellor’s summer statement outlined a number of measures that will not only support jobs but help create new roles in the economy and give confidence to businesses trying to plan for the future. The interim cuts in stamp duty and VAT should give the hard-hit housing and hospitality sectors a muchneeded boost.”
Meanwhile, it has emerged that several job centres that were closed may have to reopen to accommodate 10,000 new work coaches employed by the Department for Work and Pensions.
During the Work and Pensions Committee yesterday, SMP Chris Stephens asked the DWP’S Universal Credit chief Neil Couling where the new staff would be working.
SNP MPS protested outside their local job centres when the DWP announced it was going to close eight of the city’s 16 centres, with strikes also taking place.
Eventually six were closed in
Glasgow between November 2017 and February 2018.
Stephen Timms MP, the committee chair, asked if they would have to reopen some of the closed job centres, to which Mr Couling said: “It is a possibility.”
Mr Couling said that, while the majority of the centres that were closed were “quite small” and would not be suitable to become Covidcompliant, he said: “That’s not completely the case in Glasgow.”