Construction furloughs fall but 403,000 jobs remain on scheme

But 403,000 workers remained on the scheme, which provides employers with financial support of up to 80% of their employees' salary up to £2,500 a month per employee, as of 30 June.

That was down from a high of 721,000 workers furloughed on 14 April. In total, 174,000 construction employers have taken advantage of the scheme, with a total of 769,000 employments furloughed at some point, representing a take-up rate of 60%. In Northern Ireland, 71% of employments were furloughed, while in Scotland it was 73%, compared to 58% in England.

HMRC figures show that UK businesses have claimed a total of £30.9bn through the scheme up to 31 July, with the construction sector accounting for £2.9bn, nearly 10% of that figure.

The government announced the Coronavirus Job Retention Scheme on 20 March this year. After 1 August, the level of grant under the scheme will be reduced each month. From September, the government will pay 70% of wages up to a cap of £2,187.50 a month for the hours an employee is on furlough. From October, it will pay 60% of wages up to a cap of £1,875 for the hours an employee is on furlough.

Despite the retention scheme's significant take-up, the number of people in the UK employed in construction fell by 5.3% in the second quarter of 2020 compared to the year before – a decline of 124,000 people.

Article source: Construction Manager