- Earlier this month the chancellor Rishi Sunak noted that the cost of the government’s jobs furlough scheme – around £14bn for every month – was as much as the monthly expenditure on the National Health Service.
Covid: What impact has the furlough scheme had?
- According to data from HM Revenue & Customs (HMRC), the number of jobs furloughed peaked at 8.9 million on 8 May. It then fell to 6.8 million by 30 June and an estimated 5.1 million at the end of July, by which time lockdown restrictions had eased.
- Since then, it has shrunk to about 3.3 million - but that still represents 12% of the UK's workforce. At the same time, those who remained in work saw their hours decline sharply.
Rishi Sunak extends UK furlough scheme by one month to end of April
- The second wave of the Covid pandemic has led the number of workers on furlough to more than double since the end of October, with about 5 million people – 15.5% of the UK workforce – receiving wage subsidies from the state at the end of last month, according to the Office for National Statistics.
- As many as 2.4m jobs were still furloughed when the scheme was originally due to close on 31 October, down from a peak of 8.9m in May during the first lockdown, in a reflection of the widespread job losses that could have been triggered by its closure.
- The furlough scheme has formed the backbone of the government’s £280bn support measures during 2020 as the pandemic plunged Britain’s economy into the deepest recession for more than 300 years. The government’s budget deficit – the gap between spending and income from taxes – is expected to hit £394bn this year, more than double the amount borrowed during the 2008 financial crisis.