HMRC: 2.7m people still on furlough at end of September
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Around 2.7m people were still on furlough in the UK at the end of September, HMRC has estimated, as the UK’s incomplete economic recovery was knocked back by rising coronavirus cases.
HMRC said the arts, recreation and entertainment sector had the highest proportion of workers on furlough, at 23 per cent. Food and accommodation was not far behind, with 22 per cent of workers on furlough.
The wage subsidy scheme has supported more than 9m jobs since its launch in April. It peaked with 8.9m people on furlough in May, before gradually decreasing to 3.6m by the end of August and 2.7m by the end of September, according to HMRC’s best estimate.
However, numbers may have increased again in October and November after the four nations of the UK put tight new restrictions in place to try to curb soaring coronavirus cases. The new lockdowns – particularly England’s – prompted chancellor Rishi Sunak to extend the scheme until March 2021.
Sunak to provide £4.3bn more for jobs
Sunak is due to announce more support for the economy today as he lays out the government’s spending plans for 2021-22. He will unveil a new £2.9bn unemployment scheme and £1.4bn in extra funding for Job Centre Plus.
In the arts and entertainment sector, 45 per cent of employers were using the furlough scheme at the end of September, HMRC said. That figure was 41 per cent for accommodation and food firms.
The tax agency said around 1.22m women were furloughed, compared to 1.16m men. That marked a decrease of 552,500 women and 463,100 men when compared to 31 August.
In a statement released yesterday ahead of his speech in parliament today, Sunak said his “number one priority” is to protect jobs.
“This spending review will ensure hundreds of thousands of jobs are supported and protected,” he said. Sunak said there will be “a multi-billion package of investment”.