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Sadiq urges workers leaving furlough to retrain for free

While all sectors have faced challenges during the pandemic, around one in five of the jobs on furlough in London were in the accommodation and food services sector at the end of July…reports Asian Lite News.

The Mayor of London, Sadiq Khan, is encouraging low paid Londoners and those facing unemployment when the furlough scheme ends to retrain for free and find good jobs in sectors with skills shortages.

London has the highest uptake of furlough in the country with around 8 per cent of eligible workers (297,100) still on furlough at the end of July 2021 against a UK average of 5 per cent. Eight of the ten local authorities with the highest furlough rates were in London. Hounslow, Newham, Barnet, Brent and Redbridge all had furlough rates of 10 per cent.

As furlough comes to an end, there is a risk that there will be a rise in unemployment as Londoners are no longer supported by the scheme. The Mayor is providing free training to low skilled and unemployed Londoners, regardless of their prior qualifications, “to help them get jobs in futureproof sectors of our economy that are vital to London’s recovery.”

Earlier this month, Sadiq announced a total package of £11m to help Londoners to gain qualifications and get jobs in the hospitality, digital, creative, green and health and social care sectors. These fully funded training opportunities will be delivered through local colleges and adult education providers across the city.

While all sectors have faced challenges during the pandemic, around one in five of the jobs on furlough in London were in the accommodation and food services sector at the end of July.

 In the midst of this, UK businesses are facing a skills shortage caused by the perfect storm of COVID-19 and Brexit. According to the ONS, the total number of job vacancies in the UK reached a record high between June to August 2021.

 “The end of furlough may signal the end of a regular income for many Londoners, with hundreds of people in the hospitality and service sector finding themselves out of work,” Khan said.

“I’m offering Londoners the chance to retrain or upskill for free and gain qualifications in futureproof industries that are key to London’s recovery from the pandemic. This funding will help many people find their feet after what has been an extraordinarily difficult 18 months,” he added.

Shevone Parris was made redundant at the end of 2020 due to the pandemic. Shevone has since completed a cooking course at Westminster Kingsway College and has started up her own online food business with her partner.

Shevone said: “Losing my job made me sign up for the Culinary Arts cooking course at Westminster Kingsway College. It also gave me the inspiration to set up my business, Deliciously Fresh. I suppose everything happens for a reason.”

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Numbers on furlough fall to lowest level

The ONS Business Insights and Conditions Survey (BICS) shows numbers may have fallen even further – with estimates that between 1.1 and 1.6 million people are still on furlough…reports Asian Lite News.

Almost three million people have moved off the furlough scheme since March as the economy began to bounce back and businesses reopened, according to new statistics.
Figures which cover up until the end of June, show the fewest number of people on furlough since the scheme launched in March 2020, down from a peak of nearly nine million at the height of the pandemic in May last year.
1.9 million people remained on the scheme by the end of June, more than half a million fewer than the 2.4 million at the end of May.
The ONS Business Insights and Conditions Survey (BICS) shows numbers may have fallen even further – with estimates that between 1.1 and 1.6 million people are still on furlough.
It comes as the Chancellor visited Scotland where he has hailed the economic strength of the union and where the Government’s Plan for Jobs has supported businesses and families during the pandemic.
Ahead of meeting Scottish businesses and individuals in Edinburgh, Glasgow and Fife, Chancellor Rishi Sunak welcomed the statistics.
“It’s fantastic to see businesses across the UK open, employees returning to work and the numbers of furloughed jobs falling to their lowest levels since the scheme began,” Sunak said. “I’m proud our Plan for Jobs is working and our support will continue in the months ahead.”
The figures also show a striking fall in the number of young people on furlough, who for the first time ever, no longer have the highest take-up of the scheme.
In the last three months, younger people have moved off the scheme twice as fast as all other age brackets, with almost 600,000 under 25s moving off the scheme.
Jobs in sectors including hospitality and retail are now also moving off the scheme the fastest, – with more than a million coming off the scheme in the last three months.


This decline means those in hospitality and retail no longer make up the majority of all those on furlough. Furlough was extended until the end of September to allow for businesses to adjust beyond the end of the roadmap and to bring people back to work.
Starting on 1st August, the employer contribution to furlough costs will increase to 20% and that contribution level will continue until the scheme ends at the end of September.

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