7,000 staff whose work has been reduced as a result of the coronavirus pandemic will be placed on furlough from Monday, Transport for London has announced
This will allow Transport for London to access funding from the Job Retention Scheme, saving TfL an estimated £15.8m every four weeks.
Since London entered lockdown on 23 March, TfL has been urging Londoners only to make essential journeys. The vast majority of Londoners have listened to TfL and the Mayor of London’s advice to stay at home.
The success of this advice has seen Tube journeys fall by 95 per cent and journeys on buses fall by 85 per cent. However, this has meant that Transport for London’s main source of income has almost disappeared.
The Government’s Job Retention Scheme means the operator can access funding for 80 per cent of the salary of furloughed staff.
The 7,000 staff will be placed on furlough, for an initial period of three weeks. This represents around 25 per cent of those employed by TfL. Transport for London will pay the remainder of salaries of all furloughed employees and continue to pay pension contributions.
What did the officials say?
London’s Transport Commissioner, Mike Brown, MVO said:
“The transport network is crucial in the fight to tackle coronavirus and it will play a similarly vital role in supporting the country’s economy as it recovers from the pandemic. We have significantly cut our costs over recent years but nevertheless the success of encouraging the vast majority of people to stay at home has seen our main revenue, fares, reduce by 90 per cent. We are now taking steps to use the Government’s Job Retention Scheme to further reduce our costs where work has been paused because of the virus, while at the same time supporting our staff financially.
“Our work with the Government about the support that we need are ongoing and are constructive. We hope for an urgent agreement so that we can continue to provide the city with the vital transport it needs now and going forward.”
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