‘Several thousand’ face job cuts as Covid leave scheme changes today – .

‘Several thousand’ face job cuts as Covid leave scheme changes today – .

Around one in five employers are feared to consider layoffs as the leave scheme shrinks from today (PA / Reuters / Getty)

“Many thousands” are at risk of losing their jobs as the government leave program is again cut from today.

According to the British Chamber of Commerce (BCC), one in five companies plan to lay off staff as financial support wanes.

The Coronavirus Retention Scheme has helped keep millions of workers afloat by paying 80% of wages, capped at £ 2,500.

But from Sunday August 1, the government will now only provide 60% of state-subsidized wages – with bosses now expected to pay the remaining 20%.

The Treasury contribution was reduced to 70% on July 1, with employers taking back the remaining 10%.

Bosses have the option of supplementing wages 100% at their own expense, according to the government’s guidance document, Changes to the Coronavirus Job Retention Program.

Financial support is slowing and shrinking as Chancellor Rishi Sunak hopes to abandon the program by September 30 this year.

Additional training will be needed to help “several thousand” people made redundant during the pandemic, the BCC said.

Chancellor of the Exchequer Rishi Sunak hopes to end the leave scheme completely by September 30 (Photo: REUTERS)

More than 5 million people were on leave during the January lockdown of this year.

About 1.9 million people were still on leave at the end of June – down from 2.4 million a month earlier, according to official data.

According to HM Revenue and Customs, people aged 65 or older are said to be the highest proportion of employees still on leave, while older workers fear they will struggle to find new jobs, the BCC said.

People’s Policy Officer Jane Gratton said: “Today’s changes to the leave system are likely to bring thousands of people back into the workforce, as employers still struggle to recover. the recession are forced to carry out layoffs and reductions in working hours.

“With widespread skill shortages in the economy, some will find new jobs where their skills are in demand, while others will need to retrain to find opportunities in a different industry. “

The coronavirus pandemic has devastated jobs and businesses (Photo: PA)

One in five companies is feared to cut positions (Photo: Jack Taylor / Getty Images)

It is “crucial” that staff receive the support and training necessary to be “re-engaged and productive,” added Ms. Gratton.

She also urged the government to expand its Kickstart program – designed to help young people at risk of long-term unemployment – to enable older workers to gain new skills and experiences.

A House survey of 250 companies with workers on leave found that 18% were likely to lay off staff in response to the need to contribute more to their wages.

A quarter warned they would cut hours or hire part-time staff.

And about 15% said how they should cancel the investment.

Fears are growing that “several thousand” workers will lose their jobs as the leave scheme ends today (Photo: PA)

However, 40% said the change would not impact their business.

The research took place between July 5 and July 23.

The Treasury said it had “always been clear” that it was not “possible to save all jobs”.

A government spokesperson said: “We have deliberately extended our support, with leave in place until the end of September and three million workers who have left the program since March.

“As the economy rebounds, it is only fair that support on leave is reduced, so that we can focus support elsewhere. “

Contact our press team by sending us an email at [email protected]

For more stories like this, check out our news page.


Please enter your comment!
Please enter your name here