The Government’s furlough scheme to help employers through the pandemic is being scaled back, with wage support being reduced from 70% to 60% and employers’ contribution increased to 20% this month.
The whole scheme will end on 30 September.
One survey carried out this week has found that an estimated 350,000-plus SMEs cannot now repay Covid loans due to the impact of cash flow and supply chains.
An estimated 18% of the survey participants reported that they intended to make redundancies while around 16% said they could not afford to pay existing staff because of the pressure of repaying Covid-related loans.
At the same time, it has been widely reported that businesses have been facing difficulties in recruiting staff in some sectors.
So what should businesses do?
Try to hang on to staff in the hope that business will pick up?
Make some redundancies now to improve their cash flow and hope to rehire staff in better times?
How you treat your staff will affect your reputation as an employer.
Our briefing on planning redundancies will help you get it right: