Oral Answers to Questions

Greg Smith Excerpts

Tuesday 22nd June 2021 Commons Chamber

[Nicola Richards (West Bromwich East) (Con)]

What recent estimate his Department has made of the number of furloughed employees moving back into work.

[Greg Smith (Buckingham) (Con)]

What recent estimate his Department has made of the number of furloughed employees moving back into work.

[The Chancellor of the Exchequer (Rishi Sunak)]

Between the end of January and the end of April, 1.5 million people left the furlough scheme. The most recent business survey from the Office for National Statistics estimates that the number of employees furloughed continued to decline after that point, to approximately 2 million at the end of May, which is the lowest level reported by the survey since June last year. At the same time, the number of payrolled employees has increased for six consecutive months. I believe that the coronavirus job retention scheme is striking the right balance between supporting the economy as it opens up, continuing to provide support and protect incomes, and ensuring that incentives are in place to get people back to work as demand returns.

[Rishi Sunak]

My hon. Friend makes an excellent point. The furlough scheme has supported more than 11.5 million jobs since the start of the pandemic, and she is right to say that at that point, forecasts suggested that unemployment would peak at around 12%. Those forecasts now show unemployment peaking at half that level, which means 2 million fewer people losing their jobs than previously feared. Our unemployment today is lower than that in Italy, France, Spain, Canada, the United States and Australia, and it shows that our plan for jobs is working.

[Greg Smith]

The figures my right hon. Friend gave in his earlier answers are encouraging, but some employers in my constituency with employees still on furlough tell me that they are desperate to get those employees back to work, but the uncertainty over when restrictions will finally be lifted is holding them back. For example, in the events supply chain, the unwillingness of customers to pay deposits is holding those firms back. Does my right hon. Friend agree that the way to get the economy moving and get those employees back to work is for restrictions to be lifted by 19 July?

[Rishi Sunak]

My hon. Friend is right, and my hope and expectation is that we lift those restrictions on 19 July. By that point, we will have done what we set out to do, which is to get extra jabs in more people’s arms to provide us with that extra level of protection. My hon. Friend is right: the only sustainable way to protect those jobs is to reopen the economy so that people can return to work and provide for their families, and move on to bright new opportunities.