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.