Transport for London (TfL) is to furlough nearly 25% of its workforce from Monday as it struggles to reduce the huge financial impact of the coronavirus pandemic.
The measure applies for an initial period of three weeks.
According to TfL, this will enable it to access funding from the UK government’s Job Retention Scheme, saving the organisation an estimated £15.8m every four weeks.
Since London entered lockdown on 23 March, Tube journeys have fallen by 95% and journeys on buses by 85%, which means that TfL’s main source of income – fares – has almost disappeared.
Discussions are ongoing between TfL and the government on a wider revenue support TfL said it needs to continue effective operation of London’s transport network.
“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,” said London’s transport commissioner Mike Brown.
The government’s Job Retention Scheme means TfL can access funding for 80% of the salary of furloughed staff up to a maximum of £2,500 per month.
TfL said it has “carefully assessed which roles within the organisation are suitable for the scheme, ensuring that all staff required for recovery planning and delivery are retained”.
Furthermore, TfL will pay the remainder of salaries of all furloughed employees and continue to pay pension contributions.
