£4.6bn paid out to support wages across construction

Aaron Morby 4 years ago
Share

The Government has paid out £4.6bn since March to support the wages of construction staff on furlough and self-employed workers laid off in the lockdown.

Up to 1.48m construction staff and self-employed workers have received some kind of wages support during the coronavirus outbreak.

According to latest Government figures, so far 801,000 self-employed construction workers have received pay-outs from the Self-Employment Income Support Scheme, totalling over £2.8bn.

Over the same period, more than 150,000 construction firms submitted claims for Government support for 680,000 furloughed staff under the Coronavirus Job Retention Scheme.

This amounts to nearly £1.8bn in Government support to pay construction salaries for the period March-May.

Rishi Sunak, Chancellor of the Exchequer, said: “The UK Government is doing everything we can to protect jobs and businesses across the UK during the crisis. 

“Our unprecedented job retention and self-employment support schemes have supported the livelihoods of millions and will help ensure our recovery is as swift as possible.” 

Construction has accounted for almost 8% of all-industry furlough claims, while receiving 10% of the total support in value terms.

On average, this amounts to each employee receiving £2,647 support during the three months, although most will not have received payment throughout this period.

The CJRS scheme currently provides employers with financial support up to 80% of salary, capped at  £2,500 per month per employee, plus the associated Employer National Insurance contributions and pension contributions on the furlough pay.

This original ‘mark 1’ version of the CJRS closes at the end of this month.

From July to the end of October, it will be replaced with a revised ‘mark 2’ version of the scheme, which will allow employers to bring furloughed staff back into work on a part-time basis.

As long as staff were previously furloughed for at least a full three-week period, they can work any amount of time or shift pattern, while still being able to claim CJRS grant for their normal hours not worked.

The support from the mark 2 scheme will be scaled-down from September.

Then the government will pay 70% of wages up to a cap of £2,187 for the hours an employee does not work.

Employers will need to pay ER NICs and pension contributions and 10% of wages to make up the 80% total.

In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will then pay ER NICs and pension contributions and 20% of wages.

Despite the ongoing support the first major contractors have started to unveil job cuts as they adjust businesses to deal with the expected fall off in work.

So far private building contractor Wates has started consultations for an 8% cut in staff numbers, while regional civils contractor Osborne is planning to make 7% of staff redundant due to the financial impact of the continuing Covid-19 pandemic.

Latest news

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
2 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
2 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
2 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
2 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
2 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
2 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
2 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
2 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
3 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
3 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
3 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
4 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
3 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
3 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
4 days ago

Contractors face further insulation board price hikes

Cost of PIR insulation boards set to rise another 10%
4 days ago

Henry Boot wins £36m Rotherham Markets job

Project involves upgrading existing market and building a new library
4 days ago

Keltbray hires new head of infrastructure procurement

Lukasz Olszewski will oversee rail, energy and highways business units
4 days ago

Tunnel fit out robot to revolutionise civils work

Costain and VVB Engineering part of innovative consortium
4 days ago

Funding deal for £86m wind turbine test centre

Latest investment at National Renewable Energy Centre in Blyth
5 days ago

Plan in for Manchester ‘upside-down’ 18-storey tower

Landmark cantilevered NXQ building plan for city Northern Quarter
5 days ago

London 25km Super Sewer hooked up for commissioning

Tideway completes connection to existing Lee Tunnel sewer system
5 days ago

£200m Lincoln ring-road approved

North Hykeham Relief Road granted planning permission
5 days ago

£1bn Manchester Airport City plan rebooted as new sci-tech hub

Plan pivots from offices to science and manufacturing campus, called MIX Manchester
6 days ago

Record results at maintenance specialist Renew

Infrastructure maintenance work continues to pay off for contractor
5 days ago

Barhale lands £21m shaft scheme for Thames Water

Civils specialist bags latest upgrade deal on Thames Water Ring Main
5 days ago

Caddick names new north east director

Former Laing O'Rourke project lead joins Yorkshire contractor
5 days ago

Mount Anvil wins London Camden estate rebuild

Deverloper wins £133m Bacton Phase 2 development in Gospel Oak
6 days ago

London Met Uni seeks firm for £280m estate upgrade

A single partner contractor will deliver 10-year building upgrade plan
6 days ago

Top 30 M&E contractors set for growth – ranking

Growth in data centres and commercial refits creates optimism for year ahead
6 days ago

Contractor services