ONE in four firms say they cannot afford to top-up furloughed workers’ salaries - in a chilling sign of how many more jobs could be lost this summer.
A survey of almost 700 company directors found that about half of those using the scheme said they could provide 20 per cent or more towards furloughed workers' full-time salaries between August and October.
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The Government’s current scheme of paying 80 per cent of furloughed workers’ wages will end on July 31 and employers who continue to furlough staff will have to start contributing a proportion of the salaries.
The findings from the Institute of Directors survey will pile pressure on Chancellor Rishi Sunak ahead of his decision later this week over how much he will require employers to contribute to furlough workers beyond August.
A quarter of company directors polled said they could not afford any amount. More than a third said they would bring the majority of their furloughed workers back part-time from August.
Mr Sunak has already announced that employers will be able to furlough staff part-time, but has yet to announce details of how this will work.
Less than one in ten firms said they wouldn’t bring anyone back part-time. The IoD called for as much flexibility as possible in the system in a bid to protect jobs.
Jonathan Geldart, boss of the IoD, said: "The furlough scheme is protecting millions of jobs. Business leaders know that the Government's support can't be infinite, but the ugly truth is that if there's no money coming in the door, many firms will be forced to make difficult decisions come August.
"Directors will be fighting tooth and nail to avoid this scenario. There is hope that as more areas of the economy return to work, more companies can keep people on board.
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"However, despite best efforts, many firms simply won't be able to work at full capacity for the foreseeable future and there's no magic wand to lift demand back up again.
"The Government must soften the blow by introducing as much flexibility as possible into the furlough system. The more flexible the scheme is, the better firms can recover, and the fewer jobs will rely on state subsidy.
"With the prospect of job losses and businesses struggling to create new roles in the months ahead, the spotlight will be on our training system.
Businesses are eager to work collaboratively with government to lift skills across the board."
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https://news.google.com/__i/rss/rd/articles/CBMiS2h0dHBzOi8vd3d3LnRoZXN1bi5jby51ay9uZXdzLzExNzI0MzI3L2Zpcm1zLWNhbnQtdG9wLXVwLWZ1cmxvdWdoLXNhbGFyaWVzL9IBT2h0dHBzOi8vd3d3LnRoZXN1bi5jby51ay9uZXdzLzExNzI0MzI3L2Zpcm1zLWNhbnQtdG9wLXVwLWZ1cmxvdWdoLXNhbGFyaWVzL2FtcC8?oc=5
2020-05-28 13:10:55Z
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