Furlough ends in Newcastle with 17,500 people left in the lurch

The accommodation and food services sector remains the hardest hit
The ending of the furlough scheme leaves many in the North East at risk of unemployment (Image: Getty Images)The ending of the furlough scheme leaves many in the North East at risk of unemployment (Image: Getty Images)
The ending of the furlough scheme leaves many in the North East at risk of unemployment (Image: Getty Images)

Today marks the end of the government's furlough scheme and many in the North East are being left in limbo.

The Chancellor of the Exchequer's scheme has helped pay the wages of 11.6 million workers across the country since its inception last year.

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Rishi Sunak is set to announce a new programme of grants to help poorer households cope over the winter months, however, it remains a time of uncertainty for many still relying on the furlough scheme.

Data released by the government detailed the number of people still claiming money on furlough across the country as of July 31, 2021.

On that date, across Newcastle, 17,500 people were still reliant on the furlough scheme.

That accounts for locals in Newcastle, Gateshead, North Tyneside and South Tyneside.

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With Sunderland factored in, that figure climbs to a worrying 24,560.

Which industry is the hardest hit?

The accommodation and food services sector accounts for the highest number of employees who were still on the furlough scheme.

Across Newcastle, Gateshead, North Tyneside and South Tyneside there were 3,220 still claiming furlough pay.

Manufacturing comes in at second with 2,890 people on the scheme.

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Wholesale and retail is in third with 2,000 people on the scheme.

Which industry is the least reliant?

The Newcastle sector the least dependent on the furlough scheme is health and social work.

680 locals in that industry were claiming furlough as of July 31.

What will happen to people still on furlough?

If employers cannot find the funds to recommence paying the salaries of employees, those currently on the furlough scheme do risk unemployment.

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Many forecasters, including the Bank of England, are expecting a rise in unemployment as of Thursday, September 30.

However, there is some reassurance as recent statistics published by the Office for National Statistics reported a record number of job vacancies in the UK of more than one million.

If a furloughed worker is laid off, there are a number of legalities the employer must follow and the employee may then be entitled to jobseeker's allowance (JSA).