Covid-19: NI furlough claims fall by more than a third in May

The number of people on furlough in Northern Ireland fell by 36% during May as many businesses reopened.

The furlough scheme involves the government paying the wages of people who cannot work due to the coronavirus pandemic.

At the end of April there were 92,900 people on the scheme but by the end of May that was down to 58,600.

The numbers are likely to have fallen further through June as businesses increased their capacity.

Employers are having to shoulder more of the costs of furlough from Thursday as the government starts to wind down the scheme.

• How is furlough changing and when will it end?

Furlough was introduced in the spring of 2020 to stop people from being laid off by their employers during the lockdown.

The government paid 80% of the wages of people who could not work, or whose employers could no longer afford to pay them - up to a monthly limit of £2,500.

From Thursday the government will pay 70% of furloughed workers' salaries and employers will pay 10%.

In August and September, the government's contribution will fall to 60% and employers will pay 20%.

The monthly limit of £2,500 will stay in place, so workers will not notice the difference, but by making furlough more expensive for employers the government hopes to encourage them to take workers back full-time if they can and only furlough those they have to.

Employers already have to pay their employees' pension and National Insurance contributions.