The extended furlough scheme faces a major change next week as contributions from employers is raised from 10% to 20%, with the government paying the remaining 60% to employees.
Furloughed employees can currently get up to 80% pay (capped at £2,500 per month) for their usual working hours under the Coronavirus Retention Scheme with government vowing to continue support until the end of September 2021.
At its peak, 5.1 million people were furloughed, but that number has reduced drastically in recent weeks with 1.9 million now claiming wages from the government.
People On Furlough Hits Lowest Figure
With employers expected to contribute at least 10% of employee’s wages since July – and the opening up of hospitality and retail – approximately half a million people were taken off furlough in June prior to the change.
Chancellor Rishi Sunak said: “It’s fantastic to see businesses across the UK open, employees returning to work and the numbers of furloughed jobs falling to their lowest levels since the scheme began.
“I’m proud our plan for jobs is working and our support will continue in the months ahead.”
The amount of people on furlough is expected to reduce further in July and August as employers are asked to contribute 20% from August 1.
Despite the number of people on furlough dropping, many are still affected with the biggest impact within travel companies and the arts.