How much did pubs benefit from England v Italy? morningadvertiser.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from morningadvertiser.co.uk Daily Mail and Mail on Sunday newspapers.
Furlough costs on-trade £542m a month 5th February, 2021 by Owen Bellwood
Employment payments on top of the UK government’s furlough scheme cost the hospitality sector £542 million (US$742m) every month, according to a new report.
Payments for National Insurance, pensions and holidays cost venues £3,738 per month
Catton Hospitality, which produces scheduling management system S4Labour, found the combined cost of National Insurance, holiday and pensions for hospitality businesses is worth £3,738 (US$5,118) per venue, per month.
As such, the total monthly bill for such costs, which are not currently covered by the UK government’s furlough scheme, is £542m.
The report also warned that as businesses claim back their wage payments through the furlough scheme, venues are “constantly out of pocket”.
Furlough is costing the UK Hospitality industry in excess of £542m a month during lockdown.
That’s according to a new analysis by online labour-scheduling management company S4labour, which puts the average extra employment costs per month per site over and above Government furlough support at £3,738.
While furlough has been a lifeline for both hospitality businesses and staff, the report argues that ‘it is not the free lunch it is sometimes portrayed as’.
Operators making use of the scheme benefit from a grant that covers up to 80% of their employee’s average earnings
But the Catton Hospitality-owned S4labour says operators are left ‘constantly out of pocket’ by other costs including National Insurance contributions , the accruing of holiday and cashflow costs as a result of furlough being paid in arrears.