Government C-19 construction worker payouts top £6bn

Aaron Morby 3 months ago
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Government payouts to support self-employed and furloughed construction workers have soared to over £6bn.

The unprecedented level of support for construction was revealed in new HM Revenue and Customs figures to the end of July.

Around £2.93bn has now been paid out to 174,000 firms making claims for staff on furlough.

Over 769,000 staff have received support, with three-quarters of the industry’s eligible firms signing up to the coronavirus job retention scheme at some point in the last six months.

From now on the number of staff on furlough is expected to diminish sharply as contractors bring staff back into work or opt for redundancies to slim down for predicted lower levels of activity.

Since August employers have been asked to pay National Insurance and pensions contributions of furloughed staff and from September the amount of Government support to furloughed staff drops from 80% to 70% of salary.

New July figures from the self-employment income support scheme reveal 884,000 construction workers received pay-outs, representing an 83% take-up rate.

Pay-outs to the self-employed total just over £3.12bn, with the average claim at £3,500 being the highest for any UK sector.

Construction has taken the lion’s share of self-employed claims, throwing the spotlight once again on the size of the industry’s CIS workforce.

Construction accounted for a third of all payouts to the self-employed, far ahead of the single-digit percentage taken by other sectors of the UK.

Construction staff furloughs by region
Staff furloughed Eligible take-up
England 615,000 1,059,400 58%
North East 32,300 52,000 62%
North West 80,000 135,500 59%
Yorks & Humbs 59,300 100,800 59%
East Midlands 54,400 94,400 58%
West Midlands 56,100 97,900 57%
East 81,600 141,500 58%
London 79,600 140,300 57%
South East 99700 182,500 55%
South West 72,400 114,500 63%
Wales 35,700 57,800 62%
Scotland 89,200 121,500 73%
Northern Ireland 24,100 34,200 71%

 

Self-employed construction claims by region
No claims Eligible Take-up Value
England 782,700 944,500 83% £2.78bn
North East 21,600 25,900 84% £70m
North West 74,800 89,800 83% £242m
Yorks & Humbs 58,600 70,300 83% £197m
East Midlands 56,700 68,700 83% £203m
West Midlands 68,000 82,300 83% £238m
East 98,800 119,100 83% £372m
London 196,600 239,300 82% £682m
South East 159,900 132,700 83% £504m
South West 74,700 89,600 83% £267m
Wales 34,900 41,200 85% £108m
Scotland 41,100 49,200 84% £147m
Northern Ireland 23,600 27,100 87% £76m

 

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