13% of Barnet and 10% of Camden workers were furloughed at the end of May, according to the latest Government figures. This represents one of the highest rates in the country. 21,100 people in Barnet and 9,000 in Camden were still using the scheme at this point. This number is expected to decline now COVID-19 restrictions have been eased. However, Ms Clarke said in some struggling industries jobs were “hanging by a thread” and urged the Government to act now to stop a surge in redundancies.
At the start of this month, the Government made further changes to the furlough scheme. Employers must now contribute 20% of their furloughed staff’s wages, with the Government now only paying a 60% share.
Recent British Chambers of Commerce data revealed that the tapering down of the furlough scheme could lead to one in five firms making redundancies.
At the end of September, the Government plan to wind down the scheme completely. Ms Clarke said that this could push some businesses off a cliff-edge, particularly in the struggling arts and culture sector and the travel and tourism industry.
She is calling on Ministers to extend the furlough scheme for hard hit industries.
The local London Assembly Member says the Government can prevent redundancies by accelerating its job creation and retraining schemes and cancelling the planned cut to the £20 weekly uplift in Universal Credit payments in October.
In September 2020, the Government launched its Kickstart Scheme, pledging to create 250,000 new job opportunities for 16-24 year olds. According to the latest available data, 44,000 job placements have been filled across the country so far and only 9,710 in London.
Local London Assembly Member, Anne Clarke AM, said:
“The last 18 months have been so tough, and I would hate to see anybody losing their job as support is removed. The ability of some businesses to continue employing their staff is hanging by a thread, now is not the time to strip away all help.
“The number of people being supported by the furlough scheme might be falling now lockdown has been eased, but it will continue to be a lifeline for many people in Barnet and Camden, especially in the sectors that are struggling to fully reopen.
“The Government need to act now to stop a surge in redundancies.
“I want to see furlough extended for struggling sectors, I want to see better investment in creation programmes and for the Government to cancel their planned cut to Universal Credit”.
Notes to editors
- The latest Government Coronavirus Job Retention Scheme figures can be found here;
- From 1st August, the Government implemented further changes to the furlough scheme. Employers must now contribute 20% of their furloughed staff’s wages, with the Government now only paying a 60% share;
- The British Chambers of Commerce recently published survey data which revealed that the tapering down of the furlough scheme could lead to one in five firms making redundancies;
- At the end of September, the Government plan to wind down the furlough scheme completely;
- The Government have confirmed plans to cut the £20 weekly uplift to Universal Credit payments from October;
- In September 2020, the Government launched its Kickstart Scheme, pledging to create 250,000 new job opportunities for 16-24 year olds. According to the latest available data, as of 7th July, 44,000 job placements have been filled so far, with only 9,710 in London;
- Anne Clarke AM is the London Assembly Member for Barnet and Camden.