End of furlough will see redundancies in one in five firms

The tapering-off of the government’s job furlough initiative will see one in five firms – or 20% – let staff go, according to the British Chamber of Commerce.

From yesterday [1 August 2021], government payments go down to 60% towards salaries, with employers paying 20%.

The BCC says extra training will be needed to deal with thousands of redundancies predicted.

The most recent government figures suggest that 1.9m workers were on furlough up to 30 June – a drop from 5.1m in January. According to the government, 11.6m jobs have been supported through the Job Retention Scheme since it launched in April 2020. The scheme is due to end after 30 September. 

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