Redundancy is coming for 100,000s. That's the warning from Solidarity union. From August employers will be expected to contribute towards the cost of furlough. The scheme has covered the wages of 8.4 million staff unable to work during lockdown at a cost of around £15 billion. Chancellor Rishi Sunak has said the scheme will be wound down.
From August workers will continue to receive 80 percent of their wage – up to £2,500 a month – for the whole period, but employers will have to contribute towards it, at first just covering national insurance and pension contribution costs.
In August, if you are on furlough it starts to cost your boss.
In September, bosses will also have to pay 10 per cent of a furloughed employee's wages, with the government covering 70 per cent up to £2,190 per worker.
In October, employers will have to pay 20 percent with the government picking up the remaining 60 percent up to £1,875 before the scheme comes to an end.
Many bosses will make staff redundant. Our union is already receiving calls as notifications land on people's doorstep. We see a fresh wave of redundancies. Research by the Institute for Social and Economic Research at the University of Essex has warned 6.5 million jobs could be lost. This would equate to about a quarter of the UK’s total jobs, with more than half of the positions in certain sectors being lost.
Patrick Harrington, general secretary of Solidarity said: "It's clear that we are heading toward a period of large scale job losses. Make no mistake your job is at risk. You are right to be fearful and concerned about the future."
Now more than ever you need to have a union on your side.
Solidarity invites you to join our union. We are a small union but we are passionate about defending our member's interests. We have amongst the most highly trained Reps of any union. You can join here.
Even if you don't want to join our union we urge you to join a union. There is a list here.