Staff in the arts and creative industries overtook hospitality workers as the most likely to be on furlough in June, as the number of people being paid through the UK scheme dropped by 590,000 to 1.9 million ahead of government subsidy cuts that forced employers to begin paying towards the job protection scheme.
HMRC figures showed that the number of workers on the scheme dropped from 2.5 million to 1.9 million, its lowest level since the start of the Covid pandemic, before a 10% cut in the subsidy to employers at the start of July.
The arts and creative industries became the biggest users of furlough, and with hundreds of events cancelled until next year, many are likely to continue on the scheme until it closes in September.
About half of all staff in air passenger transport and travel agencies were also still being paid through the scheme in June.
Welcoming the fall in furloughed workers on a visit to Scotland, the chancellor, Rishi Sunak , said usage was likely to decrease further in July and August as the economy continued to reopen and more businesses needed to bring back staff.
However, critics said thousands of businesses were still unable to operate fully and needed to keep staff at home, and warned that a further 10% cut to the furlough subsidy due to take effect on 1 August could push them into insolvency .
Significant elements of the government’s pandemic rescue schemes are due to end in the autumn, including a £20-a-week increase in universal credit , which welfare charities say has said prevented hundreds of thousands of families from falling into poverty.
The Resolution Foundation said a slower than expected fall in furlough numbers during June revealed that many sectors of the economy were continuing to struggle and that benefits cuts should be delayed.
