Thousands of Luton workers off furlough as scheme begins phasing out

Chancellor of the Exchequer, Rishi Sunak, said the government will continue to support workers who need furlough up to September

Thousands of workers in Luton were out of furlough by April this year - as coronavirus restrictions started easing across the UK - figures show.

Many pub, restaurant and shop workers returned to their roles that month as outdoor hospitality and non-essential retail opened for the first time since December.

However, with restrictions still in place, businesses in other sectors continue to be hit hard by the effects of the coronavirus pandemic.

HM Revenue and Customs figures show that 12,300 jobs held by workers living in Luton were furloughed in April.

That was 2,700 fewer than the 15,000 furloughed at the end of March.

The figures also show that in April in Luton:

> Furloughed jobs in the retail sector dropped by 740, to 2,050

> In the arts, entertainment and recreation sectors, 220 fewer jobs were supported by the scheme, however 680 were still furloughed in April

> The number of hospitality jobs furloughed fell by 380, to 2,620

Through the scheme, the government pays 80% of a worker’s wages, up to £2,500 per month, if they haven’t been able to work due to the impact of the pandemic.

However, employers will pay a larger contribution from July.

Across the UK, the total number of jobs furloughed fell by 900,000 during April to 3.4 million at the end of the month, the figures show.

Dan Tomlinson, senior economist at the Resolution Foundation, which focuses on living standards, said the drop in the number of people on furlough was "encouraging".

He added that it is an indicator that the labour market – as well as the wider economy – is recovering quickly.

“But with around one in six young workers still on furlough at the end of April, today’s figures are a stark reminder of the risk of rising unemployment when the furlough scheme ends," he said.

"The Government must do all it can to ensure those workers find work as quickly as possible.”

Chancellor Rishi Sunak said: “We’ll continue to support those who need it through to September but I am hopeful that we’ll see more people moving back into work as we continue on the road to recovery.”