Fears that one mil­lion fur­loughed staff could be made re­dun­dant in near fu­ture

The Daily Telegraph - Business - - Business -

◆ More than one mil­lion jobs could be lost un­less the Gov­ern­ment in­tro­duces dras­tic mea­sures to sub­sidise the wages of bar staff and waiters, a re­port has claimed, writes Matthew Field.

Eco­nomics think tank the Res­o­lu­tion Foun­da­tion cal­cu­lated that de­spite the fur­lough scheme, huge job losses should be ex­pected across hard-hit sec­tors, in­clud­ing hos­pi­tal­ity.

With the scheme to en­ter a phased with­drawal from Au­gust, the think tank cal­cu­lated that one mil­lion fur­loughed staff were un­likely to re­turn to work, based on cal­cu­la­tions from stud­ies into job con­fi­dence.

While the job re­ten­tion scheme had al­lowed more than 9m peo­ple to be paid, the re­port es­ti­mated that busi­nesses could make around 15pc of fur­loughed staff re­dun­dant.

The pol­icy could see staff work­ing in pubs or restau­rants hav­ing 20pc of their salary paid by the state up to £1,100, ta­per­ing to zero for wages of £2,200. An­other op­tion could be to raise the thresh­old for Na­tional In­surance con­tri­bu­tions.

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