Scots 'almost certain' to need furloughs past October

First Minister Nicola Sturgeon has said it is “almost certain” Scotland will need the furlough scheme to be extended beyond October.

She was speaking today after the toll the lockdown is having on the economy had been revealed by a huge leap in joblessness.

Scotland’s unemployment rate shot up from 3.5 per cent to 4.6 per cent, a rise of 30,000 to a total of 127,000, between February and April. The UK rate is 3.9 per cent.

The Scottish Government believes the scheme that supports around 750,000 people staff and self-employed businesses must continue beyond the autumn in an indication of the pace of reopening the economy in Scotland.

Ms Sturgeon further revealed that free school meals would continue over the summer.

As the Scottish Government will not be releasing new Covid-19 figures from across Scotland until Thursday, Ms Sturgeon started her briefing with the latest updates on deaths and infections.

She said: “I'm able to confirm that since March 5 a total of 3929 patients who had tested positive and previously hospital treatment have been discharged from hospital.

“However, in the past 24 hours five deaths were registered of a patient confirmed through a test as having Covid-19. The total number of deaths in Scotland under that measurement is therefore now 2453.

“The main focus for today's remarks is the economy. The latest labour market statistics for Scotland were published – they cover the period from February through to April, and April was of course the first full month of the lockdown restrictions.

“Today’s figures show that when compared to the three months from November to January unemployment in Scotland increased from 97,000 to 127,000, the unemployment rate during this period increased from 3.5 per cent to 4.6 per cent, and the employment rate fell from 74.9 per cent to 74.3 per cent.

“The protection of the job retention scheme that was put in place at the start of lockdown will mean that these figures are likely to be an underestimate of the full impact of Covid-19 business activity."

Ms Sturgeon warned against "a reckless relaxation of lockdown measures" which could allow the virus to run out of control again.

"That would be economically counter-productive but it would also cost many more lives," she said. “The progress we've made in suppressing the virus is an essential foundation for the sustainable economic recovery that we want to secure.

“The key point is this – the more we can suppress this virus now, the more normality we can restore as we do open up the economy and society.

"We have welcomed assistance from the UK government such as the job retention scheme but it is essential that this scheme is extended if that proves necessary, which I think is almost certain, and we are making that case to the UK government.

“On Thursday I will announce the outcome of a review into lockdown restrictions and I hope and expect that on Thursday we will be able to confirm a move from phase one to phase two of our plan for reopening the economy and lifting restrictions more generally.”

Meanwhile, children eligible for free school meals will be among those who continue to be supported over the summer through a package of £27.6 million of additional funding from the Scottish Government.

The funding will ensure councils are able to continue the provision of free school meals during the summer holidays and other food provision to help low-income families during the pandemic.

The latest data from local authorities shows that around 175,000 children and young people are currently receiving free school meals – or vouchers or cash payments to buy meals.

The number of children receiving free school food has risen by 53,000 since the start of the coronavirus crisis.

The extra funding will also enable councils to continue to support a range of people who may be facing new or continuing barriers to accessing food – including due to reduced income caused if they are asked to self-isolate through contact tracing – until the end of September.

This funding is in addition to the overall package of £30 million allocated to councils in March to provide free school meals and offer food provision to key groups during lockdown.

Deputy First Minister and education secretary John Swinney said: “These are challenging times for families and economic uncertainty has added even more pressure on parents already dealing with the stress of this dire Covid-19 crisis.

“We want to ensure families are given the same support through the summer holidays as we provide in term time in recognition of this unprecedented situation. That is why free school meals provision is essential to support families, children and young people who need some extra help at this difficult time.

“This significant additional funding will allow councils to plan for the summer and to continue the existing provision, whether that be offering nutritious free meals for children or through more direct means allowing families to get food for their families. Councils will have the flexibility to ensure they are able to use this additional funding to put in place provision that meets local needs and circumstances.

“£15 million of this funding is being made available to ensure we continue supporting the range of households who have been or may experience difficulty in accessing or affording food during the pandemic. We know that people are under pressure just now as they cope with the impact of Covid-19 and this funding shows we are doing all we can to help them at this difficult time. This funding is additional to the £350 million we have already made available.”

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