A million workers are still employed by businesses at risk of closure over the next three months, as the government is poised to withdraw critical Covid support schemes, according to new analysis.
One in 16 firms say that they are now at risk of closure in the next quarter, the study by the LSE’s Programme on Innovation and Diffusion (POID) has found. While it marks a major rise in confidence since the worst depths of the pandemic in January, there are warnings that the risk to so many workers coincides with the planned end of the furlough jobs scheme and a cut to universal credit by £20 a week.
There are also concerns that some industries are still being hit disproportionately by the fallout from Covid, with the entertainment and travel industries still making heavier use of the furlough scheme than other sectors. The number of people being paid through the UK scheme stood at 1.9 million at the end of June and it is due to close at the end of next month.
Huge uncertainty remains over the economy’s direction in the next six months. While confidence has risen, there are warnings…
