£4.6bn paid out to support wages across construction

Aaron Morby 5 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

Prep work starts for vast HS2 box slide under A46

Freyssinet designed system will push 14,500t box under Kenilworth Bypass
4 hours ago

Morgan Sindall wins Canary Wharf office-to-labs job

Construction to start this month on £65m conversion
5 hours ago

Resi developer Sheen Lane heading for administration

Richmond based firm has a turnover of £50m
12 hours ago

Building safety act adding six months to delivery times

New approval gateways slow student room development programmes
11 hours ago

Five contractors win £550m airfield framework deal

MAG picks team for Manchester, Stansted and East Midlands airports
11 hours ago

Galldris bounces back to strong profits

South east civils specialist gets trading margin up to 11%
11 hours ago

Management buyout at Midlands contractor

Family business GI Sykes sold to management
11 hours ago

Taylor Woodrow wins Wolverhampton city centre revamp

£19m contract will last two-and-a-half years
12 hours ago

Morgan Sindall contracts league champion for second year

Kier ranks second in closely contested race between majors
1 day ago

New Year layoffs as Scottish modular house builder collapses

East Ayrshire Connect Modular falls into administration
1 day ago

Thames Water bidders day for £2.2bn reservoir scheme

Tenders to be invited in October for new Abingdon reservoir in Oxfordshire
1 day ago

Buckingham Plant Hire quits heavy kit market

Firm to sell fleet and focus on lighter, sustainable plant
2 days ago

Clients ‘ignoring building safety’ reforms

Clients still subjecting contractors to aggressive and sub-economic pricing
1 day ago

Castleforge plans expansion after £100m data centre deal

Investor moves into booming data centre market
1 day ago

Construction output growth drops to six-month low

Subcontractor rates rise at fastest rate for 18 months
2 days ago

Suir Engineering swoops for Scottish M&E contractor

Irish M&E firm launches UK expansion with Taylor & Fraser acquisition
3 days ago

Aggregates supply firm files administration notice

Ashville Aggregates and Concrete operates across London and South East
2 days ago

Plans in for 44-storey Manchester resi tower

Developer Glenbrook to appoint contractor this year
3 days ago

Briggs & Forrester names new engineering services MD

Will Newman replaces Ian Lawrence who steps down after eight years
2 days ago

Morgan Sindall bags Salford Uni acoustics building

Planning submitted for Acoustics Building at Crescent Innovation area
3 days ago

Lambeth to release six sites for £250m homes plan

Call for development partner to deliver 450 mixed tenure homes
3 days ago

Adrian Speller joins brother as joint MD of Midlands builder

Speller Metcalfe boosts senior leadership team
3 days ago

Winner unveiled for £2.9bn aqueduct revamp

Construction costs for Haweswater Aqueduct rise to £2.9bn from £1.75bn
6 days ago

Fortem and Equans face fight for £3bn housing upkeep deal

Birmingham City Council aims to sign new 10-year deals for four regions
3 days ago

Lendlease strikes deal to sell UK construction arm for £35m

US private equity firm Atlas to finalise purchase deal by summer
1 week ago

Hercules to offload suction excavator arm

Fleet of 30 trucks generates around £5m revenue a year
3 days ago

Tarmac trials new technique to cut concrete road noise

Quieter trips for drivers and longer-lasting roads
3 days ago

HS2 set for “fundamental reset” to lower construction costs

New chief executive promises action after latest project update
1 week ago

Solar panel installer fined £120,000 after roof fall

Court hears how employee broke his leg in fall
1 week ago

Network Rail chief Andrew Haines knighted

Thin pickings for construction in this year's New Year Honours
1 week ago

Contractor services