Furlough scheme should continue until at least spring 2022, say unions
Ending the furlough scheme too early could kill any recovery before it even starts, unions have warned.
The uk Government is reducing the contribution it makes to the Coronavirus Job Retention Scheme (CJRS) from Thursday, with employers having to start paying.
GMB union general secretary Gary Smith said: "Ending the furlough scheme too quickly could kill a recovery before it even starts.
"Ministers' 'open-mindedness' over an extension to the job retention scheme needs to become a reality.
"Instead of driving us off a furlough cliff-edge later this year, the Government should provide continued support for employers that need it especially in those sectors that have been hammered by the pandemic.
"Our recovery is a process, not an event. Ministers are seriously misguided if they think we can suddenly revert to business as usual."
Steve Turner, assistant general secretary of the Unite union, said: "Industries such as aviation, automotive and hospitality are still on the ropes, hit hard by repeated lockdowns, supply chain disruption and inconsistent government decisions, which is why we have always argued that the UK furlough scheme needs to match those of our competitor countries and be continued until at least the spring of 2022.
"The country has invested billions in keeping people in work ready for recovery, but, if ministers 'pull the rug' from under businesses too soon, jobs will go and our heroic national investment will be wasted."
The Government said more than one million workers came off furlough in the four weeks between the end of April and the end of May, which coincided with the start of restrictions being lifted and non-essential retail, restaurants and pubs reopening.
New figures show that 2.4 million people moved off the scheme between the end of February and the end of May as businesses reopened.
Around 2.4 million people remain furloughed or flexifurloughed, down from a peak of nearly nine million at the height of the pandemic in May last year.
Chancellor Rishi Sunak 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."
Manuel Cortes, leader of the Transport Salaried Staffs Association, said: "This is a terrible decision from those in power at Westminster to start phasing out furlough support while we remain in a pandemic.
"It will put workers at greater risk of being laid off - none more so than in our travel trade which has been hit so hard by the pandemic.
"Removing furlough support for our travel trade smacks of wilful ignorance because Government knows perfectly well that the industry has really not been able to trade in any meaningful way now for over a year.
"This has led to intolerable pressure on jobs and businesses up and down our high streets.
"If ministers had any sense they would recognise that there are some sectors which have not had the chance to recover, because of the nature of their business. That is certainly the case with our travel trade."
More than 100,000 fewer Scots are currently on furlough compared to the previous month, new UK Government figures have revealed.
Figures from the Treasury show that 173,100 jobs were furloughed at the end of May, compared to 275,700 a month earlier. Scotland has 83,300 jobs fully and 89,900 partially furloughed – compared with 153,700 and 122,000 respectively in April.
Uk-wide, more than one million workers came off furlough in May alone, taking the figure to the lowest rate since the pandemic began. A total of 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.
The new figures come as a poll reveals that more than a third of Scots are worried about the future of their job as furlough schemes look set to wind down over the coming months. From now, employers must pay ten per cent of their furloughed workers' usual wage, while the government will continue to pay the other 70 per cent. The study found that eight per cent said they are ‘very worried’ and 26 per cent said they are ‘quite worried’. Only a quarter of Scots said they are ‘not at all worried’ about their employment.
Concerns are particularly high in the north east of Scotland, according to the poll carried out by Survation for Advice Direct Scotland. Younger people are most worried.
Chief executive Andrew Bartlett said: “It’s particularly alarming to see such high figures among women, the young, and people in the north-east. The Covid pandemic caused massive economic turmoil, but many jobs have been protected as a result of the furlough scheme or grants.
“With the end of those schemes in sight, it’s likely that many workers will be increasingly worried.”