Citizens Advice: Further job losses are predicted when furlough ends

On July 1, the furlough scheme was reduced from an 80% contribution by the Government, to 70% with a compulsory 10% top up by the employer, adding more pressure to struggling businesses to top up the wages of staff. In addition to this, the 100% business rates relief ended, alongside the ending of the ban on commercial rent eviction.

These changes could result in redundancies and business closures, leaving thousands looking for work.

The majority of these businesses are hospitality, tourism and travel which over the last 18 months have seen incredibly challenging times. Although the hospitality industry has seen the largest increase in job vacancies to cope with Covid restrictions, workers are choosing to work fewer hours or leaving the sector altogether, with many businesses struggling to adapt. Although there has been a recent drop in unemployment rate, it is set to rise again with the end of the job retention scheme in September 2021.

With many redundancies and reductions in working hours on the horizon, there are steps you can take to understand what you can do in any situation.

So what can you do if you’re made redundant or your hours have been reduced?

Check if your redundancy or reduction was fair and that you are not being discriminated against. Our Citizens Advice Redundancy web page will give you more information and next steps.

Contact your local Jobcentre and ask for their Rapid Response Service. They specialise in helping those made redundant and can help you find a new job. This service can be used during your notice period and up to 13 weeks after you’ve been made redundant.

Ensure you ask your employer for a written reference if you feel you cannot contact them digitally.

Assess your financial situation – knowing your situation will help you understand what you need. Know what’s going out versus what’s coming in.

Assess your skills – this will help you streamline your job search.

Need to claim Universal Credit?

Universal Credit has replaced existing legacy benefits (Housing Benefit, Child Tax Credit, Income Based Employment Support Allowance, Income Based Job Seeker’s Allowance, Income Support and Working Tax Credit).

There are a lot of different eligibility criteria and all details can be found at www.gov.uk/universal-creditRemember you are not alone – we are here to help you. See our website at www.kcalc.org.uk, or call our Generalist Advice Service on 0808 278 7896 open Monday-Friday, 9am-4.30pm or our Employment Service on 01924 868147 open Monday,Tuesday,Thursday and Friday, 10am-3pm.