THE TWO IN 10 Fears jobless total will reach 20% as 250,000 firms begin to lay off staff

MORE than six million jobs could be lost amid fears the unemployment rate could hit 20 per cent in the aftermath of the coronavirus crisis.

Predictions of a “culture changing” wave of redundancies and sackings come as the Government warns its furlough scheme will end in November.

Unions have appealed for the creation of a “national recovery council” to ease the misery facing millions of families whose incomes are set to disappear.

There are fears the unemployment rate could rise to an estimated 20 per cent of a workforce of 33million as more than 250,000 firms begin laying off staff because they cannot pay wage bills.

More than 8.4 million workers are having 80 per cent of their wages paid by the taxpayer under the job retention scheme, likely to cost £100billion.

Chancellor Rishi Sunak has confirmed the scheme will wind down over the next five months. Companies will have to meet 20 per cent of the furloughed wage bill by October.

An independent study by the Institute for Social and Economic Research says at least 6.5 million jobs could be lost. Worst hit will be hotel and food services.

Senior Tories and industry experts have called for the Government to review social distancing – and if possible reduce the rule from 2 metres to one to allow more restaurants and pubs to reopen.

The high street is unlikely to return to normal as customers migrate to online shopping. Ex-Tory Chancellor Norman Lamont yesterday warned that mass redundancies were “very highly likely”. Unions have called on Boris Johnson to stand by his words and act to prevent a post-furlough jobs inferno.

The TUC has called for the Government to create an emergency “national recovery council” of business chiefs and union leaders to prevent firms having to lay off staff. The Unite union has called on the PM to step in to the row over the future of more than 40,000 jobs at BA, which is planning to make its entire workforce redundant. Staff who want to remain will be asked to apply for their jobs on reduced terms.

Asked about the BA threat during his grilling by MPs last week, the PM replied: “We are concerned about the way some companies are treating their workforce.

“People should not be using furlough cynically to keep people on their books and then get rid of them.”

Frances O’Grady, general secretary of the TUC, said: “We are supposed to be all in this together. So the PM should allow us to tackle this looming wave of job losses together.

“As support provided by the job retention scheme is reduced, the Government must step in to prevent a wave of redundancies.

“We need a national recovery council with unions and employers that would look at ways of protecting and creating jobs industry by industry.”

Unite general secretary Len McCluskey said: “If BA attempts to press ahead with these grotesque plans, the PM must consider all options.”