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One in five firms plan job cuts as furlough tapers

Some 20% of British firms plan on making staff cuts as more changes to the furlough scheme come into force, according to a British Chamber of Commerce survey.
From 1 August, government payments reduced to 60% of salary, with employers paying 20%.
According to the most recent figures (to 30 June), 1.9 million workers were on furlough, down from a peak of 5.1 million in January. The scheme is due to close at the end of September.
As the scheme winds down, support is slowly being made tapered. Since 1 July, employers have been asked to contribute 10% towards the wages of furloughed workers for hours their staff do not work, rising to 20% during August and September.
The British Chamber of Commerce surveyed 250 businesses, with 18% saying they were likely to make staff redundant in response to the furlough scheme winds down. Some 25% said they would aim to reduce hours or move staff to part-time working patterns.
Head of people policy Jane Gratton said the changes “will likely result in many thousands of people being released back into the labour market, as employers who are still struggling to recover from the recession are forced to make redundancies and cuts to working hours”.
She added that it was vital that employers and the government give returning furloughed workers the support and training they need “to be re-engaged and productive”.

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