Extend coronavirus wage subsidies or risk delayed redundancies, firms warn – the guardian, theguardian.com
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The UK government plan to subsidise the wages of workers affected by the Covid – lockdown should be extended until at least autumn to prevent it from becoming a “waiting room” for redundancy, employers groups have argued.
Demanding the chancellor, Rishi Sunak , make urgent changes to protect workers, firms and the wider economy, the Chartered Institute of Personnel and Development (CIPD) said the Treasury’s multibillion-pound coronavirus job retention scheme needed to be made more flexible to allow furloughed staff to work reduced hours.
It also said the scheme should run until at least the end of September to help firms through continuing lockdown measures or the gradual easing of tough controls on social and business activity across Britain.
Warning that unemployment would shoot up this summer if the scheme closed at the end of June as planned , the trade body for human resources said a survey of more than 1, 06 companies across Britain supported the move.
Seven in 12 Corporations that have already furloughed staff said up to half their employees could work reduced hours if the scheme allowed. Pressure is mounting on the government to outline a more detailed exit strategy from lockdown, while Labor has called for more flexibility in the furlough scheme to help companies and people wanting to work limited hours.
Peter Cheese, chief executive of the CIPD, said extending the scheme until at least September would give employers more certainty and remove the risk of a “cliff-edge exit” from furlough straight to redundancy.
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