Next and Dixons urge government for furlough clarity

Retailers Next and Dixons Carphone have called on the UK Government to clarify the exit strategy for its furlough scheme. 

According to The Telegraph, bosses at the firms are concerned that a quick shutdown could lead to a high level of redundancies before they can fully resume regular operations. 

Currently the scheme is set to end on 30 June, with the Treasury reportedly considering plans for a flexible furlough scheme which will see companies gradually bring back workers.

The retail chiefs raised concerns as the Treasury weighs up plans to introduce a flexible furlough scheme that would allow companies to partially bring workers back. It is thought that guidance that is needed is centred around staff who have vulnerable family members or are key workers who will not be immediately able to return to work.

Next chief Lord Wolfson told the paper: “I think that the thing that we need from the Government is clarity on furlough rules as and when businesses begin to reopen partially.”

He added that once furlough finishes he expects more companies to start “shedding” people.

Currently companies laying off more than 100 employees will have to carry out a 45-day consultation period meaning firms looking to having to pay returning staff by the time furlough ends will look to start making redundancies by mid-May.

Under the current furlough scheme announced last month, employers can claim a grant covering 80% of the wages for a furloughed employee, subject to a cap of £2,500 a month.