Millions of British workers still on furlough as deadline looms for £41bn jobs lifeline

A woman wearing a mask walks down an empty Camden High Street during coronavirus lockdown
PA

BUSINESS leaders, politicians and charities sounded the alarm today as government data suggests more than two million British workers are still on furlough just hours before the £41billion job-saving lifeline is withdrawn.

The Office of National Statistics survey of employers indicates that 7.5per cent of the workforce was receiving salary support in October, down from a 29.5per cent high in June.

It came amid warnings that its replacement, the less generous Job Support Scheme, will not be enough to prevent a tidal wave of redundancies with London’s retail, hospitality and leisure sectors particularly exposed.

Job-hunting website Indeed today reported an eleventh-hour spike in numbers of people uploading or refreshing their CVs. Around a third of 670,000 recent additions listed more than 10 years experience, suggesting middle management positions are under threat alongside more junior roles. Four-in-ten were in retail.

Jack Kennedy, economist at Indeed, said: “As the furlough scheme ends the stark reality is that many of these jobs simply won’t be viable. The spike in the number of people uploading a CV or updating an existing one in October hints at just how steep the cliff edge in job losses could be.”

Rachael Robathan, leader of Westminster City Council, called on the government to extend the business rates holiday beyond April and scrap plans to axe VAT free shopping for overseas visitors.

She said: “There is more central Government can do to help. This is something of great value to our international visitors and, given that 1 in 10 of all London jobs are in the West End, could help to protect employment.”

Restaurateur Jeff Galvin, who received more than 200 applications for one job at his restaurant Galvin La Chapelle in the City, said:  ""It's really, really tough on people. We have such great talent and I just hope they don't leave the industry.."

Sadiq Khan said the collapse of tourism means key sections of the capital’s economy have no prospect of returning to normal for many months.

The London mayor said:  “It is low-paid Londoners from the most deprived parts of the capital who have been most reliant on the furlough scheme, and are at most risk of falling into greater financial hardship.”

Frances O'Grady, general secretary of the Trades Union Congress, said: "No-one should lose their job just because of the coronavirus restrictions. Ministers must do more to stop mass unemployment and protect livelihoods - especially for those on lower incomes and the self-employed."

The jobs support scheme will see employees who only do a fifth of their usual hours due to the slump in demand receive a 49per cent government top-up, taking their wages to around 73per cent.

Chancellor Rishi Sunak has already made the new scheme more generous than initially proposed, offering grants of up to £2,100 a month for firms in Tier 2 areas.