Pictured above: File photo dated 25/11/2020 of Rishi Sunak(Yui Mok/PA Wire)
Businesses across the UK could be hit by a wave of sackings and redundancies if the Government furlough scheme is not extended according to reports from Reuters.
The current job support system finishes at the end of April, with Covid-19 lockdown restrictions expected to be eased by then, as part of Boris Johnson’s road map due to be announced on February 22.
However, a statement from the British Chamber of Commerce (BCC) indicates a significant package of assistance is needed within the Annual Budget on March 3 to prevent major job losses.
Chancellor Rishi Sunak will include a range of measures to help with job retentions in his announcement, but with the current budget deficit at its highest figure for 75 years, funding is likely to be reduced.
Currently an estimated 18% of private sector workers are receiving furlough, at a total cost of £46 billion as of the end of 2020.
Current state of play for UK businesses
The BCC stated the ongoing lockdown caused 61% of its UK members to suffer a fall in sales between October 2020 and January 2021, with customer service industries the hardest hit.
Alongside that, a quarter of firms said if the scheme is not amended, they would be forced to let employees go, with another 25% confirming they would cut staff hours.
This would result in a surge in UK unemployment heading into the second half of 2021, and the BCC are calling on the Government to react to offset a deeper recession.
“It is vital the UK government keeps financial support going until firms can reopen and rebuild,” said BCC Director General Adam Marshall.
“Pulling the plug now would be a huge mistake and akin to writing off the billions already spent helping firms survive.”
Concerns for the over 50’s job market
Whilst Sunak will continue the Government’s message of ‘not every job can be saved’, there is growing concern over the level of redundancies within the over 50’s.
As per an analysis study by Rest Less, reported via Wales Online, the number of people aged 50+ being made redundant rocketed by 240% up to the end of 2020.
The study claimed the 25-34 age bracket had been the most affected by Covid-19 related redundancies but issues a longer-term warning over older employees.
“With businesses suffering in the wake of the pandemic, we knew redundancies were going to be high as furlough was originally scheduled to end last October,” said Rest Less founder Stuart Lewis.
“Even though redundancy rates amongst the over 50s have never been this high, our concern is that there is worse still to come with more than 640,000 over 55s still on furlough.
“The biggest challenge for over 50s is not redundancy or furlough rates, but what happens as talented workers in this age group move from paid employment to job seeking.
“The recruitment process is where age discrimination bites hardest, particularly as the pandemic has exacerbated existing inequalities in the workplace.”
Government response to over 50’s redundancies
However, despite the growing concern over job losses and issues facing older workers in an unstable recruitment market, the Government is launching a targeted response aimed at preventing a haemorrhage of jobs.
A Government spokesman said: “Older workers are a vital asset to this country and hugely employable, which is why our Plan for Jobs is delivering tailored support to help them back into work and retrain in new industries.
“We are increasing the number of frontline work coaches by 13,500, to offer bespoke support to ensure people find a job that’s right for them.
“This includes helping over 50s retrain on our sector-based Work Academy Programme, and our new £2.9bn restart scheme for people across the UK who have been out of work for at least 12 months.”
— to www.inyourarea.co.uk
