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Workers not seeking jobs as furlough winds down

Palmers Solicitors in Essex

With most of us hoping that the worst of the pandemic may be over, despite still worryingly high case numbers, the predictions about a huge rise in unemployment following the phasing out of the Coronavirus Job Retention Scheme, or furlough, seem to be wide of the mark.

Figures from the Office for National Statistics show the opposite of jobs to be true, with its latest statistics showing job vacancies up and the jobless rate having fallen from 4.9 per cent to 4.7 per cent.

The ONS statistics also show that working hours are still to return to pre-Covid levels, but the redundancy rate dropped to 3.6 per cent for the quarter.

A recent survey has found that only 11 per cent of staff still on the scheme which ends at the end of September, were actively looking for jobs, a potential headache for employers who may feel they have to make cutbacks.

Many workers still furloughed will be eyeing the end date anxiously, while employers and their HR departments wrestle with the possibility of laying staff off or making them redundant when the scheme ends.

But with the labour market seemingly buoyant and vacancies back to and even above pre-Covid figures, there could be silver lining for those potentially affected.

There are many unfilled vacancies, particularly in the hospitality and logistics sector.

The news comes as a new survey by jobs website Indeed suggests that only 11 per cent of workers still on the furlough scheme, or who are currently jobless, are actively looking for a new job.

They survey found reasons for job search inactivity included many having sufficient savings, fears over returning to the workplace with Covid still a threat with others citing child care and access to benefits for the lack of urgency.

The survey also found that 41 per cent of those still on furlough are not searching for other work, along with over 56 per cent of those not currently working.

Jack Kennedy, UK economist at Indeed, warned about being complacent about finances and said employees on furlough appear to be taking a relaxed approach.

He said on his Twitter feed: “Among the unemployed, a sense of financial security is allowing some to be choosier about the jobs they search and apply for. Around 30 per cent of unemployed people who are not urgently looking for work said they had a financial cushion sufficient for some time.

“Despite current record vacancies, one-third of respondents want to wait for more job opportunities. Suggests degree of mismatch — available jobs may not be in fields people want. However, some respondents may simply be waiting for better opportunities to emerge. “

It’s clear that HR departments will be busy, whether with the hiring of new staff or letting go of others, as the full impact of Covid unravels.

For help and advice on matters relating to employment law, contact our expert team today.

No sign of a let up in house price boom

Palmers Solicitors in Essex

The continuing boom in house prices in the UK shows no sign of abating, according to the latest survey from the Office for National Statistics (ONS).

According to its House Price Index (HPI) report, in the 12 months to June this year, house price inflation stood at 13.2 per cent.

It will be bad news for first time buyers anxious to get on the housing ladder with the average price of a house rising by £31k over the past year to stand at £266k.

Once again, the capital was hit, with London recording the smallest annual increase of 6.3 percent, while the north west recorded the biggest increase of 18.6 per cent. However, the capital’s average house prices remain the most expensive in the UK at £510,000, while the north east remained lowest at £150,000.

Of the four UK nations, the biggest surge in prices came in Wales with 16.7 per cent, followed by England on 13.3 per cent, Scotland on 12 per cent and Northern Ireland on nine per cent.

The Chancellor’s extension to the Stamp Duty holiday in England and Northern Ireland is thought to have triggered much of the boom, but other factors have come into play, including people looking to change the type of accommodation people require following the pandemic, with many seeking to move away from cities and work from home.

The tax holiday was extended until 30 June 2021, but from 1 October 2021, the threshold will revert to pre-Covid levels. For Scotland it ended on 31 March and in Wales on 30 June.

Commenting on the figures on his Twitter feed, ONS Head of Prices, Mike Hardie, said: “The average price of UK houses now stands at £266,000 which is £31,000 higher than at this time last year.”

He added that the UK had seen the largest growth in house prices since 2004, fuelled by people in a rush to complete their purchases before the end of the stamp duty holiday.

The main sources used for the gathering of housing data used in the UK are HM Land Registry for England and Wales, Registers of Scotland, and HM Revenue and Customs’ (HMRC’s) Stamp Duty Land Tax data for the Northern Ireland HPI.

For help and advice with related residential property matters, please get in touch with our expert team today.

Right to work checks: what you need to know

Palmers Solicitors in Essex

Businesses should check that employees from the European Union (EU) or European Economic Area (EEA) have been granted the right to work in the UK, the Government has urged.

The notice comes after the “official” closure of the EU Settlement Scheme on 30 June 2021.

Under the initiative, citizens from the EU, Switzerland, Norway, Iceland or Liechtenstein who started living in the UK by 31 December 2020 can apply for permanent settled status, granting them the right to work in Britain.

But those who did not apply but remain in the UK may be working illegally.

Employers who continue to employ EU or EEA nationals without the right to work could also be fined, meaning businesses should carry out right to work checks on all existing EU and EEA workers as soon as possible.

This step-by-step video will help employers undertake new right to work checks.

Commenting on the changes, the Government said: “From 1 July 2021, EEA citizens and their family members require immigration status in the UK, in the same way as other foreign nationals. They can no longer rely on an EEA passport or national identity card to prove their right to work.”

While the EU Settlement Scheme “officially” closed in July, the Government said EU and EEA citizens and their family members who apply late will have their rights protected pending the outcome of their application and any appeal.

Commenting on the scheme, Minister for Future Borders and Immigration Kevin Foster said: “Every day thousands of people are being given status through the hugely successful EU Settlement Scheme. We’ve worked hard to ensure the vast majority applied before the 30 June deadline and are now supporting those making late applications.

“Granting temporary protection to those who apply late to the scheme, and to joining family members, demonstrates our continued support to ensure everybody eligible is granted the status they deserve.”

According to the latest statistics, more than five million European workers and their families have now been granted settled status.

For help and advice with related matters, please get in touch with our team today.