One in five firms planning staff redundancies as Covid furlough support tapers off
“Many thousands” of redundancies are being predicted as furlough support tapers off, with extra training required in response to this, the British Chamber of Commerce (BCC) has said.
A survey of businesses found that one in five firms plan on letting staff go in response to the furlough policy change.
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Hide AdThe furlough scheme has seen staff whose jobs have been put on hold during the Covid pandemic guaranteed 80% of their salaries from the Government
However, recent changes to the furlough scheme will see employers being asked to contribute 20% towards the salaries of those whose wages are currently being covered by the state.
The support is slowly being tapered off as the Treasury prepares to end the scheme by October.
In July, employers had to pick up 10% of their employees’ salaries, while Government support dropped from 80% to 70%.
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