Tag: employment

‘No place in modern Britain’: TUC calls for umbrella companies ban

  • Union body warns use of umbrella companies could spiral post-pandemic
  • New TUC research estimates that half of agency workers work for umbrella companies

The TUC has called for umbrella companies to be banned, as it publishes a new report on their increasingly widespread use in the UK labour market. The union body says the scandalous workplace practices associated with umbrella companies have “no place in modern Britain”.

An umbrella company is essentially a payroll company, used by recruitment agencies to operate a PAYE (pay-as-you-earn) system for the agency workers that they find work for. In many cases, the umbrella company will also employ the agency worker, with the agency workers becoming “employees” of the umbrella company.

A fragmented employment relationship

The TUC says that umbrella companies create multiple issues which mean it is difficult for workers to exercise their basic rights.

The union body says in particular, workers face misleading and unfair deductions from pay, adding that breaches of holiday leave and pay entitlement are widespread – with umbrella companies preventing workers from taking their holiday entitlements.

To make matters worse, the TUC says “the use of umbrella companies fragments the employment relationship”, leaving workers unsure of who to speak to resolve problems and often “passed from pillar to post” when trying to sort out their issues.

It has been widely reported that some umbrella companies promote and coerce their employees to use tax evasion schemes, leaving workers potentially facing huge future tax bills.

Increased use of umbrella companies

The union body is warning that the use of umbrella companies could spiral post-pandemic because of a combination of changes to tax rules (IR35) which have come in this financial year and the increase in agency work.

The IR35 or “off-payroll working rules” will potentially make employers liable for the tax and national insurance contributions of the contractors that they engage with.  Government guidance states that the off-payroll working rules are unlikely to apply if you are employed by an umbrella company.  

The TUC predicts that transferring contractors to umbrella companies will be seen by some companies as a convenient way to continue to shirk their tax and employment rights obligation.

New TUC research estimates that half of agency workers work for umbrella companies. Recruitment agencies have been used through the pandemic for key worker roles that needed to be mobilised quickly, like vaccinators and testing staff.

The TUC is concerned that post-pandemic the number of agency workers will increase – and therefore umbrella workers too – as companies scramble for new staff amid reopening and labour shortages in some sectors.

The TUC warns that there is no proper regulation of the sector, because the government has failed to task any of the enforcement bodies with regulating the umbrella sector, despite  a recommendation from the Taylor Review into Modern Working Practices, that enforcement of umbrella companies should be stepped up.

The union body says this is a “gaping hole in enforcement” and lets down some of the lowest paid and most insecure workers.

In order to clamp down on the umbrella companies, the TUC is calling for:

  • An outright ban on umbrella companies by requiring employment agencies to pay and employ the staff they place with clients
  • Joint liability laws in supply chains, that make the end client and any contractor in the supply chain responsible for upholding the legal rights of those working in the supply chain
  • Greater trade union access to workplaces and new trade union rights

TUC General Secretary Frances O’Grady said: “Everyone deserves decent work. But too many low-paid workers are denied the wages they were promised and basic legal rights like holiday pay because they work for umbrella companies.  

“Lots of them are the key workers we all applauded – like social care workers, teachers and coronavirus testing staff.

“These scandalous workplace practices have no place in modern Britain. But our inadequate regulations let dodgy umbrella companies off the hook – allowing them to act with impunity.

“Employers shouldn’t be able to wash their hands of any responsibility by farming out their duties to a long line of intermediaries.

“Enough is enough. It’s time for ministers to ban umbrella companies, without delay.”

UmbrellaCompaniesDownload

£70 million investment in youth employment

Young people looking to enter the workforce are to benefit from £70 million of investment from the Scottish Government.

The Young Person’s Guarantee aims to protect people from the economic impact of COVID-19 by offering every 16-24 year old in Scotland the opportunity of a job, apprenticeship, further or higher education, training programme or volunteering.

The announcement meets four of the commitments for the first 100 days of this government, and comes as a new report highlights the progress of the Young Person’s Guarantee.

Since it was officially launched in November 2020 funding has been committed to create up to 18,000 training, job and apprenticeship opportunities for young people.

The £70 million of investment includes:

  • £45 million for local partnerships to provide training, employer recruitment incentives, and mental health interventions for young people
  • £13.5 million for Colleges, Universities and the Scottish Funding Council to provide industry-focussed courses supporting up to 5,000 young people and employment support for 500 recent graduates
  • £10 million for the roll-out of new school coordinators and enhanced school provision to support young people access education, work and training
  • £1.5 million to increase places on volunteering and third sector programmes

During a visit to Young Movers, a youth charity based in Glasgow, First Minister Nicola Sturgeon said: “We know that young people have been badly affected by the pandemic and we are determined to do everything we can to support them.

“The Young Person’s Guarantee is a vital part of that support which aims to give all young people the chance to succeed despite the economic impacts of COVID-19.

“This investment of £70 million, which meets four of our 100 days commitments, will also ensure employers continue to benefit from the fresh talent and new perspectives that young people bring to workplaces across Scotland.”

Sandy Begbie, Chair of the Young Person’s Guarantee Implementation Group, said: “Inclusion was at the core of the Young Person’s Guarantee so I am particularly pleased by the increased opportunities created for young people who are furthest from the workplace. 

“None of this could have been achieved without employers being engaged and I am delighted we have almost 100 employers and business groups signed up supporting the scheme.

“Our young people, who have been disproportionately impacted as a result of the pandemic, are an asset to Scotland and it has never been more important that we deliver against the Young Person’s Guarantee.”

TUC survey: 7 in 10 disabled women say they’ve been sexually harassed at work

  • TUC publishes first UK major report into sexual harassment of disabled women at work 
  • Most disabled women surveyed told the TUC they have been sexually harassed at work – and 1 in 8 of those say they left their jobs because of this 
  • TUC calls for a new duty on employers to protect all their staff from sexual harassment at work 

Around 7 in 10 (68%) disabled women surveyed about sexual harassment say they have been sexually harassed at work, according to a new poll published by the TUC. 

And younger disabled women aged 18 to 34 are even more likely to have experienced sexual harassment, with almost 8 out of 10 (78%) reporting being harassed at work. 

Sexual harassment 

A ground-breaking TUC study on sexual harassment published in 2016 found that more than half (52%) of women had experienced sexual harassment in the workplace. And in a further TUC survey in 2019, nearly 7 in 10 (68%) lesbian, gay, bisexual and trans people reported being sexually harassed at work 

Sexual harassment at work can take many forms, from suggestive remarks, jokes about a colleague’s sex life, circulating pornography, to inappropriate touching, hugging or kissing, demands for sexual favours, and even assault and rape. 

This new TUC survey – which is the first major study into the sexual harassment of disabled women at work in Great Britain, and was carried out by YouGov – found that of those surveyed: 

  • Around 2 in 5 (38%) have experienced unwelcome sexual advances at work. 
  • More than 1 in 3 (36%) say they have experienced unwanted touching. 
  • Almost 1 in 5 (18%) experienced sexual assault, such as unwanted sexual touching. 
  • And 1 in 25 (4%) have experienced a serious sexual assault or rape at work. 

Reporting 

Two-thirds (67%) of disabled women who experienced sexual harassment at work told the TUC that they did not report the harassment to their boss the most recent time it happened. Of these, the most common reason was that they did not believe they would be taken seriously (39%). 

Some said they were worried it would have a negative impact on their career or work relationships (30%). Other reasons included not thinking they would be believed (13%) or thinking they would be blamed if they reported the incident (11%). 

And unfortunately, of those who did report the most recent instance of sexual harassment, more than half (53%) said it was not dealt with satisfactorily. 

Impact 

Disabled women told the TUC that sexual harassment had a big effect on their lives. 

Around 1 in 3 (34%) said their experiences had a negative impact on their mental health. More than 1 in 5 (21%) said it negatively affected their relationships with colleagues. And it caused 1 in 8 (12%) to leave their job or employer entirely.  

Disabled women face significant barriers getting into work and to getting paid the same as non-disabled workers, says the TUC. 

TUC research in October 2020 found that disabled women earned 36% less than non-disabled men. And the analysis found that the unemployment gap for disabled women, when compared to non-disabled men was 32.6 percentage points. 

TUC General Secretary Frances O’Grady said: “No one should face sexual harassment at work. But seven in ten disabled women say they have been sexually harassed by a colleague or a customer while at work.  

“Four years on from the explosion of #MeToo on a global scale, employers still aren’t doing enough to make sure women are safe at work. It’s time for every employer to take responsibility for protecting their staff from sexual harassment.  

“Ministers must change the law to make employers protect workers from sexual harassment specifically, and from all forms of harassment by customers and clients.  

“Anyone worried about sexual harassment at work should get in touch with their union.” 

Ministers must act 

The TUC is calling on the government to take a range of actions including: 

  • Introduce a new duty to prevent sexual harassment, putting an enforceable legal requirement on all employers to protect their workers from harassment. 
  • Strengthen legislation to tackle third-party harassment in the upcoming employment bill. 
  • Increase funding for the Equality and Human Rights Commission so it can enforce the new duty to prevent sexual harassment. 
  • Introduce a statutory code of practice on sexual harassment and harassment at work, setting out the steps that employers should take to prevent and respond to sexual harassment, and what can be considered in evidence when determining whether the duty has been breached. 

TUC calls on employers to keep their staff safe as temperatures set to soar

  • Met Office issues extreme heat weather warning for the first time 
  • Forecasters warn temperatures will continue to climb and could reach 33 degrees C (91.4F) in some parts of the country 
  • TUC calls on employers to make sure staff are protected from the sun and heat 

The TUC has urged employers to make sure their staff are protected from the sun and heat, as the Met Office issues one of its new-style extreme amber heat weather warnings for the first time. 

The amber warning covers parts of Wales, all of south-west England and parts of southern and central England and will be in place until Thursday (22 July), when temperatures are expected to peak. 

Health warning 

Working in hot weather can lead to dehydration, tiredness, muscle cramps, rashes, fainting, and – in the most extreme cases – loss of consciousness. 

The TUC says employers can help their workers by:  

  • Allowing flexible working: Giving staff the chance to come in earlier or stay later will let them avoid the stifling and unpleasant conditions of the rush hour commute. Bosses should also consider enabling staff to work from home while it is hot.  
  • Keeping workplace buildings cool: Workplaces can be kept cooler and more bearable by taking simple steps such as opening windows, using fans, moving staff away from windows or sources of heat, or installing ventilation or air-cooling.  
  • Temporarily relaxing their workplace dress codes: Encouraging staff to work in more casual clothing than normal – leaving the jackets and ties at home – will help them keep cool.   
  • Keeping staff comfortable: Allowing staff to take frequent breaks and providing a supply of cold drinks will all help keep workers cool.  
  • Talking and listening to staff and their union: Staff will have their own ideas about how best to cope with the excessive heat. 
  • Sensible hours and shaded areas for outdoor workers: Outside tasks should be scheduled for early morning and late afternoon, not between 11am-3pm when temperatures are highest. Bosses should provide canopies/shades where possible. 
  • Sun protection: Prolonged sun exposure can be dangerous for outdoor workers, so employers should make sun protection available. 

The law 

There’s no law for minimum or maximum working temperatures. However, during working hours the temperature in all indoor workplaces must be ‘reasonable’. 

Guidance suggests a minimum of 16degC, or 13degC if employees are doing physical work. And employers have a duty to keep the temperature at a comfortable level and provide clean and fresh air. 

The TUC would like to see a change in the law so that employers must attempt to reduce temperatures if they get above 24degC and workers feel uncomfortable. And employers should also be obliged to provide sun protection and water for outdoor workers. 

The TUC would also like ministers to introduce a new maximum indoor temperature, set at 30degC – or 27degC for those doing strenuous jobs. 

TUC General Secretary Frances O’Grady said: “We all love the summer sun. But working in sweltering conditions in a baking shop or stifling office can be unbearable and dangerous. 

“Indoor workplaces should be kept cool, with relaxed dress codes and flexible working to make use of the coolest hours of the day. 

“And bosses must make sure outdoor workers are protected with regular breaks, lots of fluids, plenty of sunscreen and the right protective clothing.” 

The TUC is also asking employers to consider additional needs that may arise in hot weather from coronavirus health and safety requirements. Frances O’Grady added: 

“It’s even more important to use PPE safely in this hot weather. Staff will need extra breaks to cool down if their equipment reduces ventilation. 

“And while many offices have air conditioning, few people have it in their homes. Lots of staff are still working from home, so they may struggle to work during the hottest parts of the day. Employers should allow flexible hours so people can work when it’s cooler.” 

Cllr Kate Campbell: “We’re making Edinburgh a Living Wage city”

Councillor KATE CAMPBELL, Convener for Housing, Homelessness and Fair Work, writes about Edinburgh’s ambitions to be a Living Wage city.

Fair work. You’d think in Scotland in 2021 we wouldn’t need the ‘fair’. Just the concept of work in one of the most prosperous, democratically developed and progressive nations in the world – it should just include a presumption that work will be fair.

But sadly, that isn’t the case.

We’ve too many workers in our city paid the minimum, not the living wage – that’s around 38,000 people who earn less than £9.50 per hour.  Many don’t have job security or guaranteed hours. Many have little or no access to training or development and lack any form of representation through trade unions.

I’m not going to pretend that the City of Edinburgh Council alone can fix this. We can’t. But there are some things we can do.

Firstly – we’re going to make Edinburgh a Living Wage city.

Step one is to acknowledge all the fantastic employers in our city. We need to champion the people and organisations who recognise the value of their staff. And the benefit of investing in them. And we need to come together to promote those benefits.

We’re setting up a group of existing living wage employers across different sectors. We’ll work together to understand the barriers that prevent organisations becoming living wage employers, and how we can break down those barriers. And then we’ll put together an action plan.

It’s clear that in Edinburgh tourism is a major employer, and we know that hospitality is one of the areas that has historically struggled to pay the living wage.

But hospitality businesses have also been hit hard during the pandemic – reduced capacity due to social distancing, closure due to lockdowns, outbreaks and the need to self-isolate.

As labour shortages arise from Brexit there will be a need for businesses to offer more to retain skilled staff. Fair work and the living wage will be absolutely key.

Over recent years we’ve seen customers ask more of businesses – sustainability is a good example. People want to spend money with organisations that they believe are contributing to saving the planet, or at least working hard to mitigate any negative impacts from their activity. It costs more – but customers value sustainability so it pays for itself.

So, it’s important that as customers we are asking for the same ethical values of fair employment – because as citizens we will all benefit.

The pandemic has hit many hard but people on the lowest wages, and small businesses, have undoubtedly borne the brunt. Let’s all be part of the recovery to a better city. It’ll be hard for some businesses to make the leap to becoming living wage employers – so let’s make sure we support and encourage them.

This article first appeared in the Evening News

Half of employers expect more flexible working requests from staff after pandemic

A new survey from Acas has found that half of employers in Great Britain expect an increase in demand for flexible forms of working from employees after the country comes out of the Coronavirus (COVID-19) pandemic.

Acas commissioned YouGov to ask British businesses about changes to working practices that they are expecting once the COVID-19 pandemic is over compared to before the pandemic. The poll found that:

  • Over half of employers (55%) expect an increase in staff working from home or remotely part of the week; and
  • Nearly half of employers (49%) expect an increase in staff working from home or remotely all week.

Acas has published new advice on hybrid working that can help employers introduce it and manage requests from staff who wish to split their time between working remotely and in their employer’s workplace.

Acas Chief Executive, Susan Clews, said: “The pandemic has greatly impacted working life and it’s unsurprising that many employers and their staff have seen the benefits of flexible working during this difficult period.

“Hybrid working existed before Covid and our survey reveals that more than half of employers in Britain expect this type of flexible working to increase once we come out of the pandemic.

“Our new advice can help employers look at the potential benefits of hybrid working, consider whether it is suitable for their workplace, and fairly manage any staff requests.”

Acas advice is that hybrid working can help businesses attract and retain staff as well as increase staff productivity as the flexibility allows them to balance work and personal responsibilities.

Employees can benefit by saving costs and the time spent travelling to work as well as enjoying a better work life balance.

Acas’s advice for employers includes:

  • Consult widely with staff or their representatives about introducing hybrid working and discuss practical considerations such as regular communication, technology, performance management and health and safety;
  • A company hybrid working policy could look at which roles are eligible, how someone can request it and any principles such as allowing remote working for a maximum number of days a week;
  • Ensure staff who are working remotely are not excluded and have access to the same opportunities as those in the workplace such as team building activities, training and development;  
  • Decisions around whether to approve a request for hybrid working should be fair, transparent and other forms of flexible working that could work as possible alternatives can be discussed with employees;
  • Think about training line managers and staff to help them prepare for and manage hybrid working; and
  • Consider a trial period to see if it works and if any further adjustments to arrangements are needed.

For Acas’s full advice on hybrid working, please see: www.acas.org.uk/hybrid-working

More than half of UK students considering dropping out as mental health plummets

University degrees lose value with employers

  • 55% of students are considering dropping out of their courses, while 63% say their mental health and wellbeing worsened since the start of the academic year
  • Three in 10 businesses say a job candidate’s degree doesn’t matter at all, while 56% say that it is generally not important
  • However UCAS data reveals university applications have risen

More than half of UK students were considering dropping out this academic year, while two thirds have suffered a decline in mental health, a new study has found, alongside the fact that 56% of companies do not consider a degree important when recruiting.

The research by money transfer service RationalFX found that student mental health is declining, with a recent ONS survey revealing that 63% of students said their mental wellbeing had worsened since the start of the academic year in September 2020. Furthermore, 55% of students say they are considering dropping out of their courses.

In addition, new graduates will encounter a job market where 30% of business owners say a degree is not important at all when recruiting, while a further 26% rate the qualification as not very important, according to a poll by YouGov.

Despite this, the numbers for university applications this year have risen. New data from UCAS reveals that there have been 10% more applications for this Autumn, rising from 281,000 last year to a record 311,000, with 44% of school leavers applying for university places.

Commenting on the study, a spokesperson for RationalFX said: “Choosing whether to study for a degree has always been a big decision, but the impact of the pandemic has probably made it even more significant.

“For the majority of employers, a degree is far from essential, and for many students the last academic year has been very difficult. And with the cost of attending university higher than ever before, it is certainly not a decision to be taken lightly.”

Only 14% of businesses say a degree is very important while one in four consider it somewhat important. Larger businesses are more likely to consider a degree valuable when hiring a new employee, with 56% saying that it is important, compared to one in five small businesses.

The employment sector that places the greatest importance on degrees during the hiring process is Legal, with IT & Telecoms coming in second.

Finance and Accounting comes in third, followed by Media & Marketing, Manufacturing and Construction.

Marketing is split with 47% of businesses believing a degree is important, and 50% saying it is not. The sector that places the least importance on having a degree is hospitality and leisure.

Younger business owners are much more likely to value a degree, with 23% of those aged under 35 rating one as very important, compared to just 8% of UK business owners aged 55 and over.

Businesses in London are more likely to value a degree when they are looking for new hires, with 62% considering it at least somewhat important, while nearly of half of businesses in Wales (46%) say the qualification is not important at all.

The analysis was conducted by RationalFX, which is one of Europe’s leading international payment providers. Its competitive exchange rates, market expertise, suite of FX products and online payment platform enable bank transfers in more than 50 currencies worldwide.

Employment Sector and their opinion on the importance of a degree for a new hire
SectorVery importantSomewhat importantNot important at all
Legal402611
IT & Telecoms193917
Finance and Accounting213318
Media/Marketing/advertising/ PR & Sales182923
Manufacturing132531
Construction112540
Retail141635
Hospitality and Leisure61348
UK businesses and their opinion on the importance of a degree, split by region
RegionVery importantSomewhat importantNot important at all
London273517
Southeast72529
Southwest72437
Wales111346
Scotland141936
North62239
Midlands152128
https://www.rationalfx.com

BME workers bearing the brunt of coronavirus cuts

Black and minority ethnic (BME) workers are three times more likely than white workers to have lost working hours during the pandemic, according to a new TUC poll published on Friday.

The survey – carried out for the TUC by Britain Thinks – found that around 1 in 11 (9%) BME workers had their normal 35-48 hours a week cut back during the Covid-19 pandemic. Only 1 in 33 (3%) white workers said their working hours were reduced.

Nearly 1 in 8 (13%) BME workers told the TUC that their hours were cut without them requesting it in the last 12 months, compared to 1 in 11 (9%) of white workers. And 1 in 4 (25%) BME workers said they were now working between 1-24 hours a week, compared to 1 in 5 (20%) white workers.

The poll also found that:

  • Second jobs: BME workers were nearly twice as likely to say they’d had to take on more than one job in the last 12 months than white workers. Around 1 in 14 (7%) BME workers had more than one job during the past year, compared to just 1 in 25 (4%) white workers.
  • Pressure to go into work: 1 in 5 (20%) BME respondents told the TUC they were worried that if they did not go into their workplace this would impact negatively on their status at work, for example in terms of their job security or their chances of getting a pay rise. Around 1 in 7 (14%) white respondents shared this concern.

Previous TUC analysis revealed that the unemployment rate for BME workers has risen three times as fast as the unemployment rate for white workers during the pandemic.

The BME unemployment rate shot up from 6.3% to 8.9% between the first quarter of 2020 and the first quarter of 2021, an increase of 41%. Over the same period the unemployment rate for white workers rose from 3.6% to 4.1%, an increase of 14%.

Around 1 in 11 (8.9%) BME workers are now unemployed, compared to 1 in 25 (4.1%) of white workers.

TUC General Secretary Frances O’Grady said: “Covid-19 has shone a spotlight on the structural discrimination that has been hidden in our jobs market for too long.

“BME workers have shouldered the burden of the pandemic. They’ve faced the double whammy of being more likely to be working in industries that have been hit hardest by unemployment. And it’s now clear they’ve also have been more likely than white workers to lose hours – and therefore pay. Too many BME workers are having to take on second jobs now just to make ends meet.

“We know that BME workers are more likely to be in low-paid, insecure work with less employment rights. Through the pandemic, many have paid for this discrimination by losing hours, jobs and wages. Tragically, many more have paid with their lives.

“Enough is enough. Everyone deserves a decent job, with decent pay and with decent terms and conditions. Ministers must address this inequality once and for all and challenge the structural discrimination that holds BME workers back at every level of the labour market.”

Chair of the TUC anti-racism task force and NASUWT General Secretary Patrick Roach said: “This latest evidence comes on top of other data showing that Black workers are bearing the brunt of precarious employment, zero-hours contracts and employers using ‘fire and rehire’ to drive down wages.

“With rates of unemployment rising fastest amongst Black workers, we need to see urgent action from the Government to tackle these inequalities and secure a recovery that works for everyone.

“It will also be important that employers consider and are held to account for how their decisions are impacting on Black and White workers.”

The TUC is calling on government to:

  • Introduce mandatory ethnicity pay gap reporting and make employers publish action plans to ensure fair wages for BME workers in the workplace.
  • Ban zero-hours contracts and strengthen the rights of insecure workers – which will have a disproportionate impact on BME workers.
  • Publish all the equality impact assessments related to its response to Covid-19 and be transparent about how it considers BME communities in policy decisions.

Local MSP urges young people to apply for Job Start Payment

Gordon MacDonald, MSP for Edinburgh Pentlands, is urging young people in the area to apply for the Job Start Payment if they are starting a new job after a period of unemployment.

The Job Start Payment is available to 16-24-year-olds who have been on certain benefits for six months or more. Eligible young people can apply for the one-off payment worth £252.50, or £404 if they have children.

The payment will help with the costs of starting a job including travel, new clothes or childcare. People can apply via www.mygov.scot/job-start-payment or by calling 0800 182 2222.

SNP MSP for Edinburgh Pentlands, Gordon MacDonald said: “The pandemic has been particularly difficult for young people in Edinburgh and the Job Start Payment is a fantastic source of support for young people to ensure they can get off to a good start in a new job.

“Starting a new job can be very expensive for young people when you take into consideration the costs of travel, buying clothes and other costs associated with a new job.

“I would encourage all young people who have been unemployed for a long period of time and are starting a new jo or have recently started one to apply for this support.”

Plan for Jobs: Numbers on furlough halve in three months

More than one million workers came off furlough in the four weeks between the end of April and the end of May, which coincided with the start of restrictions being lifted and non-essential retail, restaurants and pubs reopening.

  • Latest government statistics show more than one million workers came off furlough in May alone
  • Milestone moment as the lowest amount of people on furlough since the pandemic began
  • Comes as scheme begins to wind down ahead of closure in September

More than one million workers came off furlough in the four weeks between the end of April and the end of May alone, which coincided with the start of restrictions being lifted and non-essential retail, restaurants and pubs reopening.

New figures published today show 2.4 million people moved off the scheme between the end of February and the end of May as businesses reopened.

2.4 million people remain furloughed or flexi-furloughed down from a peak of nearly 9 million at the height of the pandemic in May last year.

Chancellor of the Exchequer Rishi Sunak said: “Our Plan for Jobs has supported people’s jobs and livelihoods throughout the pandemic and it’s fantastic to see so many people coming off furlough and into their workplaces with our restaurants, pubs and shops reopened.

“These figures show what we always hoped would happen – that the scheme is naturally winding down as the economy reopens, but continuing to support those businesses and employees that need our help.”

Today’s ONS Business Impact of Covid-19 Survey show numbers may have fallen even further – with estimates that between 1.3 and 1.9 million people are still on furlough.

These figures reinforce other positive signs about how the recovery is progressing. The number of employees on payroll is at its highest level since last April, business and consumer confidence have improved significantly and economic growth is outperforming expectations.

The figures show the largest reduction in the hospitality, retail and accommodation sectors, with nearly 180,000 people in pubs, bars and clubs alone returning to work between April and May.

Furlough was extended until September to allow for businesses to adjust after the end of the Roadmap and to bring people back to work.

Now, as the economy begins to reopen and demand returns, employers are being asked to contribute more and from today, they will contribute 10% towards the cost of paying for unworked hours.

This employer contribution will increase to 20% in August and September, before the scheme closes, with the Plan for Jobs still in place to provide support, including traineeships and more work coaches to help people find jobs.

New statistics for the Self Employment Income Support Scheme, also published today, show more than £25bn has been claimed to date in support for the self employed.

350,000 properties have paid no business rates for 15 months thanks to an unlimited rates relief between March 2020 and July 2021. Over 90% of businesses will now be able to benefit from a 66% reduction in business rates bills until March 2022.

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