More than 21,000 people in West Berkshire have received support from the government’s furlough scheme but it is “impossible” to predict how many will lose their jobs when it ends in October.
That’s the message from councillor Ross Mackinnon, the council’s executive member for economic development.
At a meeting of West Berkshire Council’s Executive on September 3, the Tory councillor revealed that 21,200 people in West Berkshire have been supported by the scheme, which ends on October 31, and some are now facing redundancy.
He said: “Sadly, there will be some who lose their jobs when the furlough scheme ends.
READ MORE: London Road Industrial Estate businesses promised support during regeneration
“It’s impossible for me to say how many of that 21,200 will remain in employment, I hope it’s the vast majority.”
Under the Coronavirus Job Retention Scheme, over 9.5 million workers placed on leave have been paid 80 per cent of their pay, up to a maximum of £2,500 a month.
In September, the government is paying 70 per cent of a furloughed worker’s wages, up to £2,187, and next month their contribution will drop to 60 per cent, with a wages cap of £1,875.
At Thursday’s meeting, Cllr Tony Vickers (Liberal Democrat) said: “You’ve indicated that it’s impossible to calculate, but you must be able to make an educated guess.”
Cllr Mackinnon said: “The decision on whether to return employees after the end of the furlough scheme is a matter for individual employers and will be based on their own financial situation.
“To offer a guess – educated, speculative or otherwise – wouldn’t be appropriate at this point.
“We hope the vast majority of the 21,200 do retain their jobs.”
READ MORE: ‘High number’ of Covid 19 care home deaths in West Berkshire
The Bank of England expects the rate of unemployment to double to 7.5 per cent by the end of the year if the furlough scheme ends in October, meaning around 2.5 million would be out of work.
The government has refused to extend furlough, despite calls from various companies, trade unions and the Confederation of British Industry.
Earlier today, it was revealed the scheme has cost the government £35.4 billion so far and up to £3.5 billion may have been paid out in error or claimed fraudulently.
The HMRC is now looking into 27,000 cases where they believe employers have made fraudulent or incorrect claims.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel