Number of people on furlough falls by 590,000 to lowest level since scheme opened

1.9 million remain on government-supported scheme as employers prepare to shoulder more of wage bill from 1 August

The number of people on furlough has fallen from a peak of 5.1 million during January’s lockdown (Getty)

The number of people on furlough has fallen to its lowest level since the pandemic began, official figures show.

A further 590,000 people were removed from the government scheme in June, although that left 1.9 million people still on furlough.

The number of people on furlough has fallen from a peak of 5.1 million during January's lockdown.

State support for furloughed workers wages reduced on 1 July, with employers picking up 10 per cent of their staff's pay and the government paying 70 per cent.

From Sunday, employers must pay 20 per cent and the government will cover 60 per cent.

The number of furloughed workers is higher than some analysts had predicted and remains a cause for concern, said Charlie McCurdy, Economist at the Resolution Foundation think tank.

“With employer contributions to furloughed staff doubling from this Sunday, and the scheme ending completely in just two months’ time, it’s vital that as many furloughed staff as possible return to work soon, in order to limit the rise in unemployment this Autumn,” Mr McCurdy said.

Lifting of restrictions has helped many businesses to recover but some industries, including travel and tourism, remain severely impacted by the pandemic.

Chancellor Rishi Sunak said: "It's fantastic to see businesses across the UK open, employees returning to work and the numbers of furloughed jobs falling to their lowest levels since the scheme began.

"I'm proud our plan for jobs is working and our support will continue in the months ahead."

Young people have been the most likely to be on furlough throughout much of the pandemic, but this changed in June when they moved off the scheme twice as fast as all other age brackets.

In total, 600,000 under-25s were either brought back to work or made redundant. Now, staff over 65 have the highest furlough levels of any age group.