Covid-19: Call for Stormont to protect furloughed workers’ jobs

The Federation of Small Businesses in Northern Ireland has called on Stormont to use money it has not allocated yet for a new scheme to help protect the jobs of people on furlough.

Almost 95,000 people in NI are on furlough, according to HMRC figures.

The government's job retention scheme pays 80% of workers' wages and is due to run until April.

But employers still pay employees' costs, like holiday pay, pension contributions and national insurance.

It is something that is increasingly difficult to do the longer their businesses are closed.

Allister Mulligan owns an office furniture shop in east Belfast.

Unlike previous lockdowns, he decided not to furlough his workers this time, partly because of the cost.

"You're still paying 20% minimum of your employees cost, plus national insurance contributions plus pensions," he told BBC News NI.

"You're still accruing holiday pay which is a big issue as well. If you've had somebody off on furlough for six months they've accrued half their holidays, which you still have to pay as a small employer, which is really difficult."

'Public don't see these costs'

Many small business owners would like to see more support from Stormont.

• Can I go on furlough and how much will I be paid?

• NI furlough claims rise by more than a third in three months

One such owner is Brendan Kearney who runs a café in Downpatrick, County Down, with his son, which is only open for takeaway at weekends.

He said footfall is down.

Mr Kearney said: "The general public don't see these costs.

"They come in on a daily basis and see the staff here but they don't realise what it costs before you turn the key in that door on a Monday morning, what you need to have by Friday to be able to pay the wages.

"The importance of furlough has been it has allowed people to retain staff that they probably wouldn't have been able to retain for this length of time."

Mr Kearney said without more help he is concerned there will be job losses.

He said: "It looks like a lot of these jobs won't be able to be saved when we open up again because a lot of people will start making decisions when furlough goes."

'They have run out of money'

The Federation of Small Businesses in Northern Ireland (FSBNI) is calling on Stormont to back its proposal for a £122m scheme that it has submitted to the Department for the Economy.

Chair Tina McKenzie said: "The doors have been closed for months, there's no money coming into businesses and they therefore have run out of money to cover that 20%.

"We are asking our local executive to step in and support that. It works out approximately anywhere between £250 to £400 per employee per month.

"We're talking between £20m and £30m per month but what that actually means is that you're not putting tens of thousands of people or maybe more onto our unemployment line which costs us money anyway," she added.

A Department for the Economy spokesperson said: "The department has received the proposal from the FSB.

"It is under consideration and will be taken into account in planning for potential future support schemes, within the context of the department's capacity, to be brought to the executive for consideration."