Furlough scheme is over

“With the recovery well underway, and more than 1 million job vacancies posted, now is the right time for the scheme to draw to a close” – Chancellor Rishi Sunak

• Chancellor hails Scottish workers as UK Government’s Plan for Jobs package enters the next stage
• As furlough winds down flagship schemes such as the super-deduction and Kickstart scheme continue to support jobs and businesses
• Rishi Sunak calls on Scottish firms to take advantage of ongoing support during a visit to a Legal and General modular homes factory and housing site in … Yorkshire!

The Chancellor will today (30^th September) praise Scottish workers’ ongoing resilience as the government moves to the next phase of its Plan for Jobs, part of a £400bn support package for the economy. 

The change comes as latest figures show more employees on payrolls than before the pandemic, underlying wages increasing strongly and the OECD predicting the UK to see the fastest growth in the G7 this year and next. 

Having protected over 910,000 jobs in Scotland during the toughest times of the pandemic, the furlough scheme closes today after gradually winding down as the economy began to recover. With the majority of Covid restrictions removed and the economy open again, the government is focused on investing in jobs and skills.

The UK Government’s Plan for Jobs will carry on helping to fuel the economy’s bounce-back by supporting employers across the UK to create new jobs and workers to boost their skills.

The UK Government has also provided the Scottish Government with an additional £14.5 billion in funding since the start of the pandemic.

During a visit to Legal and General’s modular factory in Yorkshire, the Chancellor will ‘double-down’ on his call for firms across the UK to make the most of billions in further support on offer, including the super-deduction – the biggest business tax break in modern British history – and the Kickstart Scheme which offers fully-funded jobs to young people.

Chancellor of the Exchequer, Rishi Sunak said:  “I am immensely proud of the furlough scheme, and even more proud of the determination and resilience of Scottish workers and businesses through the pandemic. With the recovery well underway, and more than 1 million job vacancies posted, now is the right time for the scheme to draw to a close.

“But that in no way means the end of the UK Government’s support in Scotland. Our Plan for Jobs is helping people into work and making sure they have the skills needed for the jobs of the future.” 

Scottish Secretary Alister Jack said: “From day one of the pandemic, the UK Government put in place an unprecedented package of support. The strength of the UK Treasury has protected the livelihoods of nearly a million Scots, providing certainty for many during extremely difficult times.

“Thanks to the successful UK vaccine programme, businesses are trading once again, and the furlough scheme is winding up.

“Our focus now must be on recovering our economy, investing in Scotland’s communities, and getting people into work though our Plan For Jobs.”

Whilst some other countries ended their economy-wide support schemes earlier in the year, the UK’s Coronavirus Job Retention Scheme and Self-employment Income Support Scheme continued into the Autumn.

Over 18 months on from its launch and with over £68 billion spent on the scheme, today marks the final day of the furlough scheme which has been instrumental in protecting workers and incomes from the worst of the crisis. 

The Resolution Foundation said this week that the furlough scheme has “prevented catastrophic rises in unemployment”, and there are now almost 2 million fewer people forecast to be out of work than was feared at the height of the pandemic.

While emergency support draws to a close, the UK Government says it will continue to maximise employment across the country, create high quality, productive jobs, and deliver the skills that people, businesses and the economy need to thrive.

Today, the Chancellor will visit Legal and General’s modular homes factory and housing development in Yorkshire to see some of the Plan for Jobs in action. The super-deduction has allowed them to expand their factory capacity and has supported over 1900 across the UK, including 400 new jobs.

The Chancellor will meet employees including an employee who has secured a placement with Legal and General through the Kickstart scheme.