One in five companies anticipate staff layoffs as Covid leave support declines Bedford News

“Several thousand” layoffs are expected as leave support dwindles, with additional training required in response, the British Chamber of Commerce (BCC) has said.

A business survey found that one in five businesses planned to lay off staff in response to the change in leave policy.

Leave scheme saw staff whose jobs were suspended during the Covid pandemic guarantee 80% of their salaries from the government

However, recent changes to the leave scheme will require employers to contribute 20% of the wages of those whose wages are currently covered by the state.

Support is slowly declining as the Treasury prepares to end the program by October.

In July, employers had to recoup 10% of their employees’ wages, while government support rose from 80% to 70%.

This amount will be further reduced to 60% from Sunday August 1, with employers taking 20% ​​of the holiday pay in August and September.

Of 250 companies whose employees are still on leave, 18% told the chamber they were likely to lay off staff in response to requests to contribute up to 20% of their staff on leave.

However, a quarter said it would aim to cut hours or move staff to part-time work models.

The BCC warns that the latest cut in leave assistance will lead to thousands of job losses and calls on ministers to ensure those affected can retrain.

Jane Gratton, head of personnel policy at BCC, said: “Today’s changes to the leave scheme are likely to lead to the reintegration of several thousand people into the labor market, as employers who still find it difficult to recovering from the recession are forced to make layoffs and reductions in working time.

“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.

“Whether workers on leave return to the workplace or to the wider workforce, it is crucial that employers and government give them the support and training they need to be re-engaged and productive.

“In addition to the opportunities for rapid retraining, the government should extend the Kickstart program until 2022 and extend it to allow older workers to acquire new skills and experience. “

A government spokesperson said: “Our jobs plan is working and has supported the livelihoods of workers throughout the pandemic with two million fewer people expected to be unemployed than expected this year. last.

“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’s only fair that support on leave is reduced, so that we can focus support elsewhere.

“We’ve always been clear that it’s not possible to save all jobs, but our Jobs Plan helps people of all ages find the skills they need to get back to work, including via the Restart Scheme, the sectoral work academy. program and our targeted employment entry support program.