employment – Page 17 – The NEN – North Edinburgh News

Scotland’s night time economy ‘on brink of collapse’

The Night Time Industries Association (NTIA) is warning of an impending unemployment tsunami, with up to 24,000 jobs thought to be at risk within weeks, as a majority of struggling night-time economy businesses have now run out of cash to pay furlough contributions and fixed costs.

The Scottish Government released the latest Strategic Framework update on Friday, which confirmed businesses will be subject to the commercially unviable levels system of restrictions for many months longer despite all financial support being withdrawn by the end of April.

Worse still, there is no commitment or target date for the return to commercially viable trading for businesses in the sector, which is only possible when social distancing and all other legal restrictions end.

A survey this month of NTIA members confirmed the perilous state the sector is now in, with average Covid related debt reaching a wholly unsustainable £150,000 or more per premises, and businesses facing an imminent cash flow crunch.

The survey also confirmed that less than a quarter of premises have licensed outdoor areas, the vast majority are many months behind on rent or mortgage payments, fewer than a third have been able to trade viably at any point in the last year, and almost all cannot reopen or trade viably while social distancing remains.

These businesses have now exhausted financial resources. Cash reserves have been depleted, more borrowing is now impossible with no guaranteed opening dates and businesses are rapidly running out of cash to pay their fixed costs and furlough contributions.

Business insolvencies and mass job losses are now inevitable within weeks unless the Scottish Government acts urgently. The NTIA wrote to First Minister Nicola Sturgeon earlier this month highlighting the issues and requesting immediate crisis talks.

It is beyond disappointing that as yet we have had no response whatsoever.

NTIA Spokesman Gavin Stevenson said: “Our members have done the right thing, closed their previously successful businesses for the sake of public health, and gone deep into debt paying the enormous fixed costs and furlough contributions to keep staff employed for over a year now.

“We were the first to close and will be last to open. No sector has suffered more. But Government have consistently taken our sector for granted and refused to engage meaningfully with our representatives.

“Many of our members have been closed for over a year now, and virtually all have suffered crippling financial losses. In short, the money going out every month has been far greater than the money coming in, and government support has typically covered less than a quarter of this deficit.

“To add insult to injury government support has now ended while there is no end date to forced closure and other restrictions. Scottish Government now only has two options, provide substantial and immediate additional support for as long as it is mandated that our businesses stay closed and/or operate under the restrictions that make them unviable, or provide a clear route map with target dates for the end of all legal restrictions on capacity, activity, and opening hours.

“If neither of those options are forthcoming then our First Minister is, in effect, asking thousands of small Scottish business owners to bankrupt themselves.”

First Minister Nicola Sturgeon will make a statement this afternoon. She is expected to confirm the latest easing of restrictions will take place next Monday (26 April) and will include the reopening of hospitality, gyms and non-essential shops.

Almost two fifths of workers given less than a week’s notice of shifts

Close to two-fifths (37%) of UK workers in full or part-time employment are given less than a week’s notice of their shifts or work patterns, according to new research conducted by the Living Wage Foundation.

The research – based on two surveys, of over 2,000 UK adults in each case – addresses a gap in the UK’s labour market data and understanding of hours insecurity, being the first recent study to assess notice periods for work schedules across the workforce.

The study found that among the 59% of workers whose job involves variable hours or shift work, over three-fifths (62%) reported having less than a week’s notice of their work schedules. At the extreme, 12% of this group – amounting to 7% all working adults – had less than 24 hours’ notice.

While short notice periods affect workers throughout the UK, they are particularly common in London, where almost half (48%) of all workers received less than a week’s notice of work schedules. Scotland (35%), the South of England excluding London (34%), and the North of England (33%) are areas where short notice periods were less common.

A second survey conducted by the Living Wage Foundation homed in on the experience of full-time, low-paid workers, finding that they were particularly hard hit by short notice of working hours.

Of those working full time and paid below the real Living Wage of £10.85 in London and £9.50 in the rest of the UK, more than half (55%) had less than a week’s notice of work schedules, with 15% having less than 24 hours’ notice.

Low-paid, full-time workers from Black, Asian and minority ethnic backgrounds (68% of whom had less than a week’s notice of work patterns) and those with children (64%) were also disproportionately affected.

Despite this, and the challenges facing many employees and businesses, some employers are stepping up to commit to stronger standards on shift patterns to better support workers and families.

This includes Scottish energy provider SSE, which has today been announced as an accredited Living Hours Employer, joining, amongst others, Aviva and Standard Life Aberdeen as employers committing to provide workers with secure, guaranteed working hours.

The Living Hours programme requires employers to both pay a real Living Wage and commit to provide at least 4 weeks’ notice for every shift, with guaranteed payment if shifts are cancelled within this notice period.

Living Hours employers also provide a guaranteed minimum of 16 working hours every week (unless the worker requests otherwise), and a contract that accurately reflects hours worked.

The Foundation’s research shows that currently just 10% of workers who have variable working hours or conduct shift work received at least four weeks’ notice of shift patterns.

Laura Gardiner, Director, Living Wage Foundation, said: “Without clear notice of shift patterns provided in good time, millions of workers have had to make impossible choices on childcare, transport and other important aspects of family life.

“Low-paid workers have been particularly hard hit during the pandemic, with millions struggling to plan their lives due to the double whammy of changing restrictions on economic activity and insufficient notice of work schedules from employers.

“Despite this, and the challenges many employers have faced, some have stepped up during this crisis and committed to provide workers with secure, guaranteed hours and notice of shift patterns. These are the businesses that will help us rebuild and recover, and we encourage more employers to follow their example.”

John Stewart, SSE HR Director, said: “The real Living Wage movement has been an incredible phenomenon, championing the fundamental truth that people should be able earn enough to live a decent life.

“Living Hours is the other side of that coin. The amount of pay employees take home can be affected by irregular and unpredictable hours. The majority of our direct employees are already on contracts which meet the Living Hours requirements, but it is right that a company like SSE, headquartered in the UK and delivering some of the biggest projects in the fight against climate change, should guarantee higher standards for workers.

“This is fundamental to ensuring there is a fair and just transition to net zero. Like with our Living Wage accreditation, the most important impact of Living Hours is that, in time, it will flow through our supply chain activities and benefit those working regularly on our behalf too.

“It is the right thing to do and we are very proud to have achieved this accreditation and hope it will help show others the way.”

Recovery Loan Scheme launched

A new UK government-backed loan scheme has launched to provide additional finance to those businesses that need it.

new loan scheme will provide further support to protect businesses and jobs
loans will include 80% government guarantee and interest rate cap
government has backed £75 billion of loans to date as part of unprecedented £350 billion wider support package

The Recovery Loan Scheme will ensure businesses continue to benefit from Government-guaranteed finance throughout 2021.

With non-essential retail and outdoor hospitality reopening next week, Ministers have ensured that appropriate support is still available to businesses to protect jobs. From today, businesses – ranging from coffee shops and restaurants, to hairdressers and gyms – and can access loans varying in size from £25,000, up to a maximum of £10 million. Invoice and asset finance is available from £1,000.

The Chancellor of the Exchequer, Rishi Sunak, said: “We have stopped at nothing to protect jobs and livelihoods throughout the pandemic and as the situation has evolved we have ensured that our support continues to meet businesses needs.

“As we safely reopen parts of our economy, our new Recovery Loan Scheme will ensure that businesses continue to have access to the finance they need as we move out of this crisis.”

This is in addition to furlough being extended until 30 September, and the New Restart Grants scheme launched last week, providing funding of up to £18,000 to eligible businesses.

The UK Government is also supplementing this with the Plan for Jobs, focused on protecting, supporting and creating jobs across the country through the Kickstart scheme, T-level and a National Careers Service.

The scheme, which was announced at budget and runs until 31 December 2021, will be administered by the British Business Bank, with loans available through a diverse network of accredited commercial lenders.

26 lenders have already been accredited for day one of the scheme, with more to come shortly, and the government will provide an 80% guarantee for all loans. Interest rates have been capped at 14.99% and are expected to be much lower than that in the vast majority of cases, and Ministers are urging lenders to ensure they keep rates down to help protect jobs.

The Recovery Loan Scheme can be used as an additional loan on top of support received from the emergency schemes – such as the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme – put into place last year.

So far, the government’s emergency loan schemes have supported more than £75 billion of finance for 1.6 million British businesses and this new scheme will build on that success. This is part of the government’s unprecedented £350 billion support package which has included paying millions of workers’ wages through the furlough scheme and generous grants and tax deferrals.

Business Secretary Kwasi Kwarteng said: “We’re doing everything we can to back businesses as we carefully reopen our economy and recover our way of life.

“The launch of our new Recovery Loan Scheme will provide businesses with a firm foundation on which to plan ahead, protect jobs and prepare for a safe reopening as we build back better from the pandemic.”

Reactions from business groups:

Rain Newton-Smith, CBI Chief Economist, said: “The coronavirus loan schemes have provided a critical lifeline to businesses, and so its successor – the new Recovery Loan scheme – comes as a huge relief to firms.

“These loans can be taken alongside existing COVID loans to help firms refinance, restructure and go for growth.

“It’s vital support remains as restrictions relax and demand returns to normal, allowing businesses to recover, save jobs, and support for reopening.”

Commenting on the Recovery Loan scheme, Suren Thiru, Head of Economics at the BCC, said: Accessing finance remains crucial to the lifeblood of a business and so the launch of the Recovery Loan scheme is welcome.

“The new scheme can play a potentially pivotal role in supporting the recovery by getting credit flowing to the firms who most need it.

“Chambers of Commerce will continue to work with government and the banks to ensure that businesses have the clarity they need to enable them to use the new scheme to help them return to growth.”

David Postings, Chief Executive of UK Finance, said: The banking and finance industry remains committed to supporting businesses of all sizes through the next phase of the pandemic response.

“As focus turns to economic recovery, we know that many firms are still facing uncertainty. The new Recovery Loan Scheme, alongside other commercial financial support, will help firms rebuild and invest for future growth.”

One in three Scots experience financial shock during pandemic

Financially shook: 19.8 million people have experienced a financial shock since the pandemic began – with an average decrease in income of £538 per month

Two out of five UK adults (38%) have experienced a financial shock as a result of the pandemic

Those who experienced a financial shock saw their income decrease by £538 per month on average– almost a full week of spending for the average household2 according to the ONS – and equating to £11 billion3 nationally

Over half (51%) of UK consumers have not taken steps to protect themselves against a potential financial shock

New research from Yolt, the award-winning smart money app, reveals that almost 20 million UK adults have experienced a financial shock, such as a pay decrease, job loss or a drastic change in financial situation, since the beginning of the pandemic.

Those who have had to deal with a financial shock saw their income decrease by over £530 per month on average – which almost equates to one full week of spending for the average family in the UK, according to the Office for National Statistics (ONS). Despite this, over half (51%) of UK consumers revealed they have not taken steps to protect themselves against a sudden change in income, or a shift in their finances that would mean they couldn’t cover their usual outgoings.

The research found that in many cases (19%) people had seen their income decrease and one in ten (11%) have been furloughed during the pandemic. In responses to these shocks, over a third (34%) have dipped into their savings and a quarter have turned to credit card spending (26%). One in five people who experienced a financial shock (20%) tried to raise money by selling things online and one in seven (16%) borrowed money from their family.

Experiencing a financial shock makespeople much more likely to put precautions in place in the future, as three out of four (74%) who had previously experienced a financial shock have taken action – compared to a third (33%) who hadn’t faced a shock.

Amongst all UK adults, these preventative steps included, reviewing theirmonthly outgoingstosee where cutbackscanbe made (23%), putting money aside in a rainy day fund (15%) and a focused approach to paying off debts (12%) to help ease financial pressure.

In fact, one in four of Brits (25%) said that the pandemic has made them finally look totackle their debt – as evidenced by recent data from the Bank of England which found that UK households repaid a total of £16.6bn on credit cards and loans in 20205.

Financial uncertainty continues to fuel consumer anxiety in the UK. Almost two out of five UK adults (38%) are extremely worried about their financial future and half (54%) want to protect their family financially more now, than ever before.

Pauline van Brakel, Chief Product Officer at Yolt, said: “Our research shows that the impact of the pandemic on people’s finances has been far reaching.

“There is no uniform financial experience or response tothe current economic climate and we’re unfortunately seeing a widening wealth gap, with some people able to save during this period, as the opportunity to spend has declined, and other people unfortunately having suffered a significant reduction in income at an average cost of £538 per month.

“With the UK still experiencing great levels of uncertainty there could be further financial shocks on the horizon for many – especially with government support schemes such as furlough due to come to an end in the coming months.

It’s no doubt a challenging time for all but engaging with your finances and looking to see where you could make cutbacks to save even a small financial cushion can be a lifeline if you do experience a financial shock.

“At Yolt, our recently launched evolution of the app is designed to help you manage your finances and take the hassle out of saving – by helping people save while they spend and making creating savings habits easier.”

Young workers bearing the brunt of job losses, says TUC

New TUC analysis of official statistics shows BME youth unemployment rate has increased at twice the speed of young white workers during the pandemic
Union body calls on ministers to create good new jobs, extend and widen Kickstart scheme and boost universal credit

The unemployment rate for young black and minority ethnic (BME) workers has risen at more than twice the speed of the unemployment rate for young white workers, according to new TUC analysis.

The analysis of ONS figures reveals that the unemployment rate for young BME people aged 16-24 years old soared from 18.2% to 27.3% between the final quarter of 2019 and the final quarter of 2020. This is a 50% increase in the rate over the period, and a rise of 9ppts.

Over the same period the unemployment rate for young white workers rose from 10.1% to 12.4% – an increase of 22% of the original rate, or 2.3 percentage points.

These unemployment figures measure the proportion of young people who want to work who are in a job, and do not include young people who are inactive such as students. They tell us that BME young people who choose to work, rather than study, have a more difficult time in the labour market than their white peers.

Youth unemployment

Previous TUC analysis found that young workers generally have suffered a bigger hit to their job prospects than any other age group.

More young workers were made redundant during summer 2020 than in all of 2019. And the number of pay-rolled employees aged under 25 fell by 437,000 between February 2020 and February 2021. This accounts for 63% of the nearly 700,000 payroll jobs lost over the pandemic.

The TUC says this is largely the result of Covid-19 hitting sectors of the economy where young people tend to work, such as accommodation and food services.

But the union body is concerned that the disproportionate effect on young BME people is further evidence of racism within the labour market.

Government action needed now

The TUC is calling on the government to:

Create good new jobs. We could create 1.8 million new jobs in the next two years in green transport and infrastructure, and by unlocking public sector vacancies.

Improve and extend the Kickstart scheme. The scheme is not effective as it doesn’t guarantee a high-quality sustainable job on a decent wage for every young unemployed person. Ministers should also ensure that ethnic monitoring is built into the scheme so it is clear who is taking part and whether they are getting jobs at the end. In addition, Government should encourage employers to use positive action measures permitted by the Equality Act.
Give more financial support for people who have lost their jobs. Without a boost to universal credit, many will be pushed into poverty.
Provide dedicated careers advice for young workers who have lost their jobs.

TUC General Secretary Frances O’Grady said: “Covid has removed any doubt that racism exists in our workplaces – and in wider society. And our new analysis shows that it starts as early as age 16.

“All our young people need opportunities as they start out on their careers – but they’ve been hit hardest by job losses in the pandemic. And some are facing additional obstacles because of their race. That’s wrong.

“Ministers must stop delaying and challenge the racism and inequality that holds back BME people from such an early age. And start creating good new jobs so that all of our young people have a fulfilling future to look forward to.”

Chair of the TUC Young Workers Forum Alex Graham said: “Young workers have experienced first-hand the impact of the pandemic. Many have lost jobs and others are concerned that without help from government, they will be out of work too.

“The disproportionate impact on young BME workers is another reminder that racism exists in the labour market as in wider society. More work is needed to tackle discrimination in the labour market and make racism it a thing of the past.

“The government must act to protect and create jobs and provide careers advice to help young people find work. We’ll be talking at our conferences about the all the action needed to stop the mass unemployment of young workers.”

Edinburgh Guarantee will help business back on its feet

The pandemic has impacted us all in so many ways. As the vaccination programme rolls out, we can start to see a return to a more ‘normal’ way of life. But we can’t just build back to where we were (writes Cllr. KATE CAMPBELL).

This crisis has brought into sharp focus the structural inequalities that are woven through our society. We need to build an economy that offers more stability and, crucially, more equality for everyone.

Sadly, many firms are saying they’ll have no option but to make redundancies once furlough ends. The full impact on employment is still to be fully realised. This is alongside the economic uncertainty caused by Brexit, still largely masked by the pandemic.

So there is much to do.

Supporting business and retaining jobs must be the priority, alongside building an economy with fair work, sustainability and wellbeing at its heart. As your council we feel that we’ve an important role to play.

Together, with partners, we’re working hard to support businesses to get back up and running. So far, we’ve administered over £181.4m in grants to more than 19,000 businesses.

And we’ve been working on plans to bring back the Edinburgh Guarantee – first launched after the last recession, offering training or employment to all young people.

We’ll be relaunching as the Edinburgh Guarantee for All, expanded to support residents of all ages.

We know that people who already faced disadvantage have been more likely to be adversely affected – people on low incomes, in insecure work, women, disabled people, and people from a BAME background. So support will be focussed on those who need it the most.

We’ve been speaking to businesses, colleges, universities, voluntary sector and national organisations. We’ve met with employers from all sectors, gaining valuable insights into how the pandemic has affected different industries.

We’ve been struck by how much our business community wants to work together to rebuild our economy, creating good quality jobs and opportunities for fair work. And we’re looking for more employers to join us.

There are many benefits to being part of the Edinburgh Guarantee. We’ll help employers connect with a diverse and talented pool of potential employees.

With a track record of delivering employment support we can help businesses who want to promote inclusion and diversity in their workforce, with all the benefits this brings.

The Edinburgh Guarantee team will be on hand to help with recruitment processes. And we’ve been pulling together key resources, for example, access to funding to support recruitment. Getting involved will help employers to raise the profile of their business and connect with other organisations across their sector.

All this information will be available on our new website, launching soon.

But most importantly it’s an opportunity for our business community to get involved, actively, in rebuilding our economy.

So please get in touch with us today via edinburghguarantee@edinburgh.gov.uk – be part of the recovery of our city, and give someone that chance to move into fair work or gain the education and training that they deserve.

Cllr Kate Campbell is Edinburgh’s Housing, Homelessness and Fair Work Convener.

This article first appeared in the Edinburgh News

Full scale of Britain’s job crisis uncovered in new research

Seven new private sector jobs will be needed to create one viable job post-pandemic

Cities will lead economic bounce back but most new jobs are expected to be low-skilled and low-paid.
Government must upskill workers and encourage higher-skilled businesses to invest in cities – particularly in the North and Midlands.

New Centre for Cities’ research in partnership with HSBC UK reveals that Britain’s jobs crisis is bigger than realised as the economy will need to create almost ten million new private sector jobs just to reverse the damage done by the pandemic.

Analysis of Britain’s ‘jobs miracle’ from 2013 to 2019 – when the national economy created 2.7 million net new jobs – finds that 19.3 million private sector jobs were created during this period and 16.6 million were lost. This meant that seven new private sector jobs were needed to create one viable job.

If this pattern repeats post-Covid then 9.4 million new private sector jobs will be needed to get the 1.3 million people who lost their jobs during the pandemic working again.

After the financial crisis big cities created the vast majority of new jobs and are expected to do so again post-Covid. London created one in four of all new private sector jobs (790,300) – equal to 17 Scarboroughs, or 25 Hartlepools. Other big cities also played an outsized role: in Manchester, 152,100 new jobs were created; in Birmingham 99,100 were; and in Glasgow 40,800 were.

In total, Britain’s ten largest cities created almost half (45.6%) of jobs during the ‘jobs miracle’, despite accounting for just 3.5% of land. In contrast, smaller towns and rural areas created 36% of new jobs. These findings underline the important role that big cities will play in helping the country recover from Covid-19.

Contribution of cities and non-urban areas to job creation, 2013-19

Source: ONS, Business Structure Database (BSD)

Many of the jobs lost in the pandemic were in sectors such as hospitality and tourism. While they are expected to recover quickly once the economy reopens, with an estimated three quarters of new jobs likely to come from sectors such as these, relying on them for new jobs will not address years of poor productivity and pay stagnation, particularly outside London and the Greater South East.

After the pandemic, the productivity problem that UK cities face will need to be addressed.

To do this the Government should invest in adult education to train people for higher-paid jobs in emerging industries. It should also recognise the crucial role that cities will play in building back better from the pandemic. It should invest £5 billion in a new City Centre Productivity Fund to make struggling city centres more attractive places for high-skilled businesses to locate.

The paper’s other proposals to help the country build back better from the pandemic include reforming business rates, which in their current form are a tax on business investment, and devolving more economic powers and resources to local government – particularly England’s metro mayors.

Centre for Cities’ Chief Executive Andrew Carter said: “Britain’s biggest cities will play a central role in our recovery from the pandemic, as they did after the last economic crisis when London alone created a quarter of all new jobs.

“We must use Covid-19 as an economic reset and address many of the long-standing problems that the economy has faced in recent years such as stalled productivity and stagnant pay. To do this the Government will need to focus on investing in adult education to train people for higher paid jobs.

“Addressing these problems will be be essential if the Government hopes to attract higher-skilled businesses in emerging industries to cities and large towns in the North and Midlands and meet its levelling up objectives.

Ian Stuart, CEO, HSBC UK said: “The employment challenge ahead for the country’s economy cannot be underestimated.

“Beyond the sheer volume of new jobs required, the UK will need to create high value, export-led employment across all regions, if it is to address the age-old productivity puzzle.

“Coming out of the Covid-19 pandemic, we will only truly succeed in levelling up the country if the challenge is shared between government and the private sector with a focus on reskilling our people and attracting new business growth and international investment in the sectors where we have a real competitive advantage.”

One Year of Furlough

Yesterday marked the one-year anniversary of the furlough scheme being introduced. TUC’s ALEX COLLISON takes stock

The scheme, a big win for the union movement, guarantees that employees working for businesses that have been closed due to social restrictions, who may have otherwise lost their jobs, receive at least 80 per cent of their wages while they’re unable to work.

Numbers using the scheme

The furlough scheme has undoubtedly protected millions of jobs throughout the pandemic, making it one of the few big successes in the government’s response to the pandemic.

Between the scheme’s introduction and the middle of February 2021, 11.2 million jobs have been furloughed at some point, with 1.3 million employers making use of it.

Use of the furlough scheme peaked in early May 2020, when 8.9 million jobs were furloughed. 4.7 million jobs were still furloughed at the end of January 2021, the latest available day that HMRC figures cover. A business survey from the ONS provides more up-to-date information, showing that 19% of the private sector workforce was furloughed in early March. This has been the same since January, and suggests the number of people furloughed has likely stayed around the same since January.

The number of people furloughed in January 2021 is the highest it’s been since July.

As you’d expect given the sectors most impacted by social restrictions, use of the scheme has been much higher in some industries than others. At the end of January, 44% of all furloughed jobs are within two industries: accommodation and food services (24%) and wholesale and retail (20%).

This equates to 1.1 million jobs in accommodation and food, and 940,000 jobs in wholesale and retail.

While the arts and entertainment sector has less jobs furloughed (315,000), this constitutes a large percentage of its workforce. 55% of the workforce was furloughed at the end of January 2021. This is a similar rate to accommodation and food (56%).

Across all industries, the number of jobs furloughed at the end of January was 47% lower than it was when furlough was at its peak. But, again, this varies by industry.

Construction and manufacturing, for example, both had large numbers of jobs furloughed in May 2020. While there’s still a significant number of jobs furloughed in these industries, the number has fallen by around two-thirds. In contrast, the number of employments furloughed in accommodation and food and arts and entertainment has fallen by 30%.

And it’s worth noting where these jobs may have gone. HMRC data on the number of payrolled employees shows that accommodation and food and arts and entertainment saw the most job losses between April 2020 and January 2021.

It therefore seems likely that some workers in these industries are losing their jobs rather than returning from furlough.

The scheme hasn’t been perfect

While the furlough scheme has undoubtedly saved millions of jobs, it hasn’t been perfect. A key flaw of the scheme is that there’s no protection to ensure no one is paid below the minimum wage while furloughed. While employers can choose to top up the wages of furloughed workers, not all do.

Low-paid workers are more likely to not to have their pay topped up. Because of this, in April 2020, around the peak of the scheme, just over two million employees were not being paid the legal minimum.

This means that the household finances of many low-paid workers, already being paid an insufficient minimum wage, have been hit hard.

Young workers, part-time workers and workers in the hospitality sector have also been more likely to be affected. Shockingly, a third of all accommodation and food workers were not earning the legal minimum wage in April 2020.

As well as this, the government’s attempts to wind down the scheme have often proved premature. The number of jobs furloughed hit its lowest point on October 31st, when it dropped to 2.4 million. The scheme was due to end on this day, but was extended at the last minute.

The number of employments furloughed went up to 3.7 million on November 1st, and then increased further a few days later due to stricter lockdown measures being introduced. This uncertainty around the future of the furlough scheme seems to have led to unnecessary job losses.

And the government has struggled to reach those in non-conventional work, whether self-employed forced to operate through companies, zero-hours workers, and those mixing employment and self-employment.

The government introduced the Self Employment Income Support Scheme (SEISS) alongside the furlough scheme, but the two didn’t seamlessly interact to cover all workers, and the requirements of the scheme have meant that millions of workers have fallen between the cracks, unable to get support.

What next?

The government has committed to keeping the furlough scheme running until the end of September. The amount the government contributes to the wages of furloughed workers will begin to reduce before then, dropping to 70% in July and 60% in August and September.

The current roadmap out of lockdown provisionally plans for all areas of the economy to be up and running months before the end of furlough. However, the September end date creates a cliff edge, especially as it comes alongside the end of the Universal Credit uplift. The government must ensure it adapts the scheme to any changes of the roadmap. If business closures last longer than expected, so too should the scheme.

It’s also urgent that the government overhauls our broken social safety net so that it properly supports for those who need it. This includes raising both Universal Credit and legacy benefits to at least 80% of the national living wage (£260 per week), ending the five-week wait by converting advance payment loans to grants, and scrapping the two-child limit, benefits cap and no-recourse-to-public-funds rules.

Finally, it’s important that the government begins to look beyond the scheme. Investing now in good, well-paid jobs will help to replace any jobs lost when the scheme ends.

Fast tracking spending on projects such as broadband, green technology, transport and housing, for example, could deliver a 1.24 million jobs boost by 2022, and the TUC has set out plans to fill and create 600,000 jobs in the public sector.

Edinburgh signs up to the Kickstart scheme

More than 120,000 jobs for 16- to 24-year-olds have now been created through the government’s flagship Kickstart Scheme, with the UK Government making it even simpler for employers to join.

The Kickstart Scheme provides funding to create new job placements for 16- to 24-year-olds on Universal Credit who are at risk of long-term unemployment.

Employers of all sizes can apply for funding which covers 100% of the National Minimum Wage for 25 hours per week for a total of 6 months.

Chancellor Rishi Sunak said: “Young people are among the hardest hit in times like these, which is why we’re doing everything we can to ensure they’re not left without hope and opportunity”.

The City of Edinburgh Council has confirmed plans to take on employees using the Kickstart scheme. The council has identified placements within some of their services and are currently working across the Senior Management team to identify other opportunities which meet the conditions of the programme.

Lothian MSP Miles Briggs said: “It is very welcome news that Edinburgh City Council is getting on board with the Kickstart scheme. The scheme moving up a gear is pivotal to Scotland and the United Kingdom’s economic recovery from covid-19, providing many jobs for 16–24-year-olds.

“The scheme has removed the requirement that employers create a minimum of 30 vacancies to apply directly. This means that small businesses will be able to benefit from this and create greater opportunities for our young people.

“It is vital that we see a focus on job creation and this is yet another example of the UK government’s determination to put economic recovery at the forefront of recovery plans.

“Above all these policies are critical if our young people are to have a bright future. This is positive news and means that young Scots hit the hardest by the pandemic are given opportunities to start on a positive career path”.

NHS Lothian committed to Young Person Guarantee

NHS Lothian has announced that, as part of a commitment to the #youngpersonsguarantee, they will be the first Health Board in Scotland to go live with #kickstart opportunities throughout 2021.

The Kickstart Scheme is a 6 month paid job with a local employer, funded by the Government. It provides a fully funded opportunity for young people to gain experience of working in one of Britain’s most exciting companies.

The Kickstart Scheme was announced by the Chancellor in the Summer, and will offer hundreds of thousands of job opportunities over the next two years. A £2 billion pot is available to fully fund exciting positions with businesses across Britain.

Jobs from the Kickstart Scheme are open to 16-24 year olds, who are claiming Universal Credit, and are at risk of long term unemployment. If you have a work coach they will talk to you about the Kickstart Scheme and whether it’s right for you.

We have roles on offer in many different types of businesses, and across England, Scotland and Wales. Plus if you take on a Kickstart placement you might be able to progress to an apprenticeship within the same company.

Ask your Work Coach about these opportunities and look on the Apprenticeships website.

The first jobs are now live, talk to your work coach to find out more. If you don’t have a work coach, find out more about your career options.