One-in-five hospitality workers still furloughed

By Nikkie Thatcher contact

- Last updated on GMT

Number crunching: statistics from HMRC have revealed the number of workers on furlough (image: Getty/alexsl)
Number crunching: statistics from HMRC have revealed the number of workers on furlough (image: Getty/alexsl)

Related tags: Legislation, Recruitment, Furlough, Hmrc

Some 19% of employees in the hospitality sector were on furlough at the end of June 2021, official figures have revealed.

The data from HMRC found at the end of last month, there were 540,000 employers with 1.9m people on the Coronavirus Job Retention Scheme in total, with in the region of 18% of these  in the accommodation and food services industry.

The latest update of the figures includes claims for periods up to 30 June 2021 and includes claims submitted to HMRC by 14 July 2021.

Of the more than 20 sectors the data is broken down into, the accommodation and food services industry had the largest number of furloughed workers.

It estimated there were 133,000 employers with staff eligible for furlough in the accommodation and food services industry with 1.73m employments eligible for furlough.

The figures found as of the end of June, the take up rate of the furlough scheme was at 19% – 337,800 employees.

Industry breakdown

This was down by almost 292,000 from 629,700 when compared with the take up rate of employments at the end of May - meaning the sector had the largest reduction of workers on furlough between 31 May and 30 June.

For the period of 1 May to 30 June, the accommodation and food services sector had made claims to the value of £608m however, from 1 May to 31 May, this was £401m meaning in June, claims substantially reduced to £207m.

A more details breakdown by industry group found beverage serving activity sector had 27,200 employers with staff eligible for furlough and of this, 394,900 employments eligible for furlough.

At the end of May, there were 201,400 people on the scheme. However, as of 30 June, this had fallen to 98,900 – a decrease of half (51%).

Scheme ending

The Coronavirus Job Retention Scheme, more commonly known as furlough, will end in September, after numerous extensions.

However, in a change from its introduction in March 2020, from May 2021, employers had to pay national insurance and pension contributions for furloughed workers.

Furthermore, from 1 July 2021, employers then had to contribute 10% of furloughed workers’ wages, with the scheme funding the remaining 70% up to the amount of £2,187.50.

At the beginning of August next week, this will change again to employer contributions being 20% up to £625 and wages from the scheme at 60% with a cap of £1,875.

Then from September, the scheme will continue to pay 60% up to £1,875, with the 20% employer contribution up to also to £625.

Related topics: Legislation

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