Pandemic has seen 316,500 workers put on furlough across Wales
NEW statistics have shown the full extent of the dependence of employers in Wales on the furlough scheme with nearly a third of a million workers on furlough.
Just over a quarter of the 1.2 million-strong Welsh workforce is furloughed. They are among 8.9 million people who have been paid to stay at home across the UK at a total cost to the taxpayer of £19.6bn.
The new figures for the UK Government’s job retention (CJRS) and self-employment support (SEISS) schemes also show how many people in each area of Wales have been put on furlough.
The schemes were announced on March 20 as part of a package of measures to support jobs, businesses and individuals affected by the coronavirus outbreak.
Yesterday’s figures show 316,500 jobs in Wales have been furloughed up to May 31, 2020, across a wide range of sectors including retail, agriculture and construction.
This compared to 628,000 people furloughed through the scheme in Scotland, and a total of more than two million in London and the South East.
Cardiff has seen 36,000 people furloughed, with 23,000 receiving support through the CJRS in the city of Swansea. Flintshire has seen 18,000 people furloughed – including around 3,200 Airbus workers.
The Job Retention Scheme provides employers with financial support up to 80% of salary, up to a maximum of £2,500 per month per employee.
The figures also show that 102,000 self-employed people in Wales have accessed the Self Employment Income Support Scheme, receiving £273m in support. They are among 2.6m self-employed people across the UK who have relied on the scheme.
Nationally, employers in the wholesale and retail sectors have furloughed the highest number of employers, covering 1.6 million jobs, followed by accommodation and food service employers furloughing 1.4 million.
The total value of claims made in the UK topped £19.6bn by May 31.
Chancellor Rishi Sunak said: “The UK Government is doing everything we can to protect jobs and businesses in Wales and across the UK during the crisis.
“Our unprecedented job retention and self-employment support schemes have supported the livelihoods of millions and will help ensure our recovery is as swift as possible.”
Secretary of State for Wales Simon Hart said: “The UK Government said it would do whatever it took to support the people and businesses of Wales through the pandemic and we have produced an unprecedented package of measures to deliver on that promise.
“So far, more than 316,000 Welsh jobs have been supported by the job retention scheme, while £273m has been provided to support 102,000 self-employed people. People and businesses in Wales have also benefited from UK-wide schemes such as VAT deferral, company loans and Universal Credit, while the Welsh Government has been allocated an additional £2.2bn in direct coronavirus funding.
“The UK Government has provided certainty for employers and workers to ensure that Wales’ economy is ready to bounce back from the pandemic.”
Wrexham MP Sarah Atherton MP added: “We will make it through this pandemic and we must ensure that the economy is ready to fire on all cylinders when we are allowed out of lockdown and have defeated this virus.”
Leader of the Welsh Conservatives in the Welsh Parliament Paul Davies MS said: “Only by working together are we getting through this. By supporting businesses, big and small, and the independent plumbers, electricians, builders and many other self-employed people we can make sure that our economy is ready to fire on all cylinders when we can finally ease the lockdown.”
The CJRS scheme will continue to support jobs until the end of October, with flexible part-time furloughing beginning in July to support businesses as the economy is carefully reopened.
From July 1, employers can bring back to work employees who have
previously been furloughed for any amount of time and any shift pattern, while still being able to claim a grant for their normal hours not worked.
When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of a week. The scheme will close to new entrants from June 30. From this point onwards, employers will only be able to furlough employees who they have furloughed for a full three-week period prior to June 30.
The SEISS scheme has also been extended, with those eligible able to claim a second and final grant in August of up to £6,570.