More than a third of jobs furloughed in Cornwall and Isles of Scilly

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More than a third of jobs furloughed in Cornwall and Isles of Scilly

Published at 10:01am 26th July 2020. (Updated at 8:34pm 27th July 2020)

More than a third of jobs have been furloughed in Cornwall and the Isles of Scilly, according to new figures.

The Trades Union Congress has called on leaders to provide more support for businesses to "stem the tide of redundancies” when the scheme ends in October.

Figures from HM Revenue and Customs show around 79,700 claims to furlough jobs were made in Cornwall and the Isles of Scilly by the end of June.

That was 11,200 more than at the end of May, and means 35% of eligible jobs had been furloughed – one of the highest rates in the UK.

Under the job retention scheme, launched by Chancellor Rishi Sunak in March, the Government pays 80% of employees’ wages, up to a maximum of £2,500 per month per employee.

Jobs at firms which are unable to operate or have no work for their employees because of coronavirus are eligible for furlough.

Across the South West, 31% of eligible jobs were furloughed by the end of June, while the rate was 31% across the UK.

work

The figures show 9.4 million employments across the UK had been placed on furlough by the end of June, at a cost to the Treasury of £26.5 billion.

The scheme will be scaled back in August, when firms start making contributions to the costs, and will close in October.

Mr Sunak recently announced that employers will receive a one-off bonus of £1,000 for each furloughed employee who is still employed by January 31 next year.

However, the TUC warned it "falls short" of what is needed to prevent job losses.

“Mass unemployment is the biggest threat facing the UK.

“Struggling businesses need more than a one-off job retention bonus to survive in the long run.

“The more people we have in decent work, the faster we can move out of recession."

TUC general secretary, Frances O’Grady 

The Institute of Directors, representing business leaders in the UK, said broader measures are needed to help companies which have "fallen through the gaps" of support throughout the pandemic.

A report from the Office for Budget Responsibility, the UK's spending watchdog, predicts that 1.3 million furloughed workers may lose their jobs once the scheme ends.

money

Furthermore, different figures show around 30,600 people in Cornwall and the Isles of Scilly had applied to the Self-Employment Income Support Scheme by the end of June.

From May 13th, eligible self-employed workers could claim a grant worth 80% of their average monthly profits for a three-month period, limited to £7,500.

Claims made by people in Cornwall and the Isles of Scilly amounted to £85.6 million.

Self-employed workers can claim a second and final grant in August, lowered to 70% of profits and capped at £6,570.

The Association of Independent Professionals and the Self-Employed said there was a "noticeable absence" of support for the self-employed in Mr Sunak's announcement.

“While the Chancellor has announced a measured and sensible end to the employee furlough scheme in October, freelancers are left to face a cliff-edge in August."

Andy Chamberlain, IPSE's director of policy

A tapered end to the SEISS would "address the imbalance" between employees and self-employed people, he added.

A Treasury spokesman said applications for the final grant will remain open until October 19, making it "among the most generous schemes in the world".

"Many self-employed people will benefit from the jobs created through the Plan for Jobs."

Treasury spokesperson

You can find all the source data here and here.

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