According to Martin Lewis, hundreds of thousands of furloughed workers face redundancy.
Martin Lewis, founder of MoneySavingExpert.com, has issued a warning to those on furlough due to changes in the scheme set to happen in August.
Unfortunately, despite furlough being designed to keep people in employment, it doesn’t protect you from being made redundant.
Employers will be required to start to make contributions towards costs from August, and this could mean redundancies begin to be announced soon.
This is because employers have to give 45 days notice before making redundancies, and this can still happen while staff are on furlough.
If employers think they can’t afford to start contributing towards furlough pay come August, redundancy letters could start being sent this month.
This situation will likely spiral come October 31st, when the furlough scheme ends.
Currently, those unable to work due to coronavirus such as hospitality staff are able to get 80% of their wages paid by the government, up to a maximum of £2,500 a month.
The scheme was launched on the 20th March and was backdated from the 1st of the same month, and as of the end of today, no new employees can be put on the scheme.
From August the rules are changing and employers will be expected to pay the National Insurance and Pension contributions.
From September they will also be required to pay 10% of the salary, which will be upped to 20% in October when the scheme is set to finish.
Martin Lewis has explained that this means 100,000s or even millions of people could face redundancy. This is because 8m people are currently on the furlough scheme.
In his weekly email published today, Martin said: “I’m sorry for the stark warning. From August, employers need to start contributing towards furlough costs.
“This means redundancy is likely by then for those in roles employers don’t consider viable after October, when furlough ends.
“As redundancy can require a 45-day consultation period, that means many will soon get letters. I suspect this will impact 100,000s or even millions.”
If you are furloughed and made redundant it doesn’t affect your redundancy pay rights and your employer is still required to carry out a fair redundancy process.
How much you are entitled to depends on your age and length of service. If you are under 22 you are entitled to half a week’s pay for each full year; one week’s pay for each full year if you are between 22 and 41; and one and a half week’s pay for each full year you are over 41.
You are not entitled to a redundancy pay out if you have been working for your employer for under two years.
A HM Treasury spokesperson said: “The Coronavirus Job Retention Scheme is one of the most generous schemes of its kind and it has so far protected more than 8million jobs and supported millions of businesses during this crisis.
“As the economy re-opens, we will continue to look at how to adjust our support in a way that ensures people can get back to work, protecting both the UK economy and the livelihoods of people across the country.”
Employers are not allowed to base redundancy payout on the rate of your furlough pay instead of your usual salary.
To help those affected, Martin Lewis has released a guide to redundancy which you can see here.
Bonfire Night, Christmas lights switch-on and NYE fireworks cancelled in Manchester
Some of the biggest festive events in Manchester have been cancelled, in some sad news this afternoon.
The council has scrapped its official Bonfire Night displays, as well as the city centre’s Christmas lights switch-on and the New Year’s Eve fireworks.
With coronavirus still affecting our everyday lives, it was always likely this could be the case, especially considering Manchester has overtaken Bolton as the worst affected hotspot in our region.
However, there is still a glimmer of light, as it’s also been revealed there’s hope the Manchester Christmas Markets might still return to our streets this year.
The event remains ‘under review’, as the council works out whether they can safely go ahead.
Some parts of the event have already been given the green light to return, like the ice rink in Cathedral Gardens, which will be open from November 7th to January 3rd as things stand – with a larger rink and reduced capacity so people can social distance.
And Christmas lights will still be put up around Manchester, even though there’s no switch-on ceremony.
The giant LED Santa – who appeared in Piccadilly Gardens for the first time last year – will also be back, accompanied by a trail of light sculptures throughout the city.
Councilor Pat Karney, Manchester’s Christmas spokesperson, said: “Christmas in Manchester is an incredibly important time for the city’s economy.
“The city attracts millions of visitors each year, which local businesses rely on – and it’s important to the city’s recovery that we can bring people back into the city safely.
“Covid means that Christmas will be different this year, but we are working hard towards celebrating the festive season as safely as possible. So watch this space.”
However, the council has made it clear that all events are subject to coronavirus restriction updates at both a local and national level.
Manchester bars launch #CancelTheCurfew campaign to end ‘disastrous’ 10pm curfew
Everything you need to know about the campaign…
A new campaign, launched by the hospitality industry in Manchester, is calling for the government to scrap the 10pm curfew in a bid to save the industry.
Hospitality professionals from around the country have grouped together to help launch the #CancelTheCurfew campaign.
It’s been designed to raise awareness to consumers about the impact the 10pm curfew is having on the industry, and with hopes that the government make a U-turn on their policy.
The curfew is a devastating blow to the hospitality industry that reopened just 12 weeks ago to the public, after being closed throughout lockdown.
The curfew means some businesses are losing multiple hours of trade a day, including over 40 hours a week in some of those worst hit.
Tom Lord, founder of Hospitality Gin and hospitality consultant, says: “The industry that we love is in grave danger of being suffocated by this curfew. Some venues were starting to see a light at the end of the tunnel before it was announced as customers returned and we all settled into ‘the new normal’. Now we’ve been plunged back into uncertainty.
“We want the British public to know the impact that the curfew is going to have, not just on our businesses, but on our friends and colleagues. We have borne the brunt of the measures announced over the past fortnight.
“We are vilified as breeding grounds for the virus, yet Public Health England’s own figures show this is not true. In fact, the latest figures show that we have one of the lowest infection rates outside of the home.
“Hundreds of thousands of people will lose their jobs as a direct result of this disastrous policy, thousands of businesses will close their doors forever, and the hospitality industry will never be the same again. Stop blaming hospitality, let us serve”
In an Instagram post, @cancelthecurfew wrote: “The UK Hospitality Sector directly employs 10% of the working population and contributes £39 Billion in tax revenue.
“The newest legislation and government advice is paralysing our industry and we must be heard; as a unified voice, to protect what we have left and what our futures might hold for us.
“You can show your support by using the hashtag #cancelthecurfew and by signing our Google sheet document. We hope to raise awareness of our cause and get to those who make these decisions before it’s too late.”
The movement started this week on social media, with the explanation that the worst hit venues are reporting a more than 60% drop in revenue since the curfew has been imposed.
Adding to that, they said: “Latest figures from PHE show that only 3% of transmissions outside of the home are from the hospitality sector.”
Mojo’s Manchester has also now banned the MPs from their bars until the curfew is changed.
Michael Greenhow of Mojo said: “With neither evidence to support the assumption that hospitality is driving infection – only 35 cases reported in the sector and as of yet no sign of the threatened dramatic upturn in deaths, the move to curtail the operational hours of our already crippled industry seems unjust and punitive, not to mention illogical and irrational.
“Are people more infectious after 10pm? Hospitality has slaved to work responsibly within the constraints laid out for us and now we are being thrown aside with scant concern for the impact these measures will have on our businesses and the wider economy.”
The movement begun this week by asking hospitality leaders, operators, employees, and anyone with a love for the hospitality industry to share the #CancelTheCurfew images on social media.
They are then following this up with a silent protest and social media ‘thunderclap’ at 10pm this Saturday, October 3rd, with venues and workers all over the country standing outside their venues and posting images of this on their social media.
You can show your support by signing the contact form here, and there’s also a petition in the pipeline pending approval from government.
‘Hero’ Asda worker pays for customer’s shopping after he forgot his card
What a top bloke!
An Asda worker that paid for a shopper’s food after he forgot his debit card has been hailed a ‘hero’.
Alex works at the Omagh branch of Asda in Northern Ireland, and has been hailed a hero on the internet after he footed the bill for a customer who forgot his wallet.
Asda shared the news on their Facebook page, writing: “A big well done to our colleague Alex who went out of his way to help a customer at our Omagh store who’d realised he’d forgotten his debit card when he went to pay for his shopping just as the store was closing.
“Rather than leaving the customer stuck, kind-hearted Alex went ahead and paid for the shopping himself.”
Alex said: “I just didn’t want to leave the customer stuck. It was very late at night, and I wouldn’t want this to happen to anyone!”
His store manager added: “This is just one example of Alex going the extra mile for our customers.
“Not many would trust that the person would come back to pay for their goods, but Alex did as he didn’t want to see them stuck.
“He’s a very caring member of our team, and I think he has a very bright future here.”
Facebook users have congratulated Alex, one saying ‘What a top block. Give the guy a medal”.
Another added: “Well done young man I bet your parents are really proud, they have every reason to be.”
A third wrote: “Well done Alex, not many would have been so kind. So glad your store manager applauded you on your kindness to one of its customers.”
Well done Alex!