Figures reveal thousands more added to furlough scheme in Kirklees

The Institute for Public Policy Research and Resolution Foundation think tanks are calling for the Government to extend or modify the Job Retention Scheme beyond October, to avoid triggering a spike in unemployment.

Figures from HM Revenue and Customs show around 61,800 claims to furlough jobs were made in Kirklees by the end of July – 34 per cent of all eligible jobs. That was 2,900 more than at the end of June, though this was fewer than the 8,500 jobs added to the scheme the previous month.

During this time, the Government paid 80% of employees’ wages through Chancellor Rishi Sunak’s scheme.

Jobs at firms which are unable to operate or have no work for their employees because of coronavirus are eligible for furlough. From September, the Government’s contribution will drop to 70% of wages, with employers having to make up the extra 10%, before the scheme is expected to end in October.

However, the Institute for Public Policy Research said that would be a “historic mistake”, and an extension is needed.

A Treasury spokeswoman said: “We’ve been clear that we can’t sustain this situation indefinitely but the end of the furlough scheme is not the end of our support for jobs.

“For businesses that can successfully bring furloughed employees back to work, this includes a £1,000 job retention bonus.”