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