Butlin’s warns 1,000 jobs are at risk when furlough ends in October

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BUTLIN’S has warned that 1,000 jobs are at risk of being axed when the furlough scheme ends in October.

Staff have been advised to take paid holiday if they have any left or unpaid leave if not, according to a document sent to employees seen by the BBC.

Butlin’s could cut a six of its workforce when the furlough scheme ends

The holiday camp operator is currently running at half normal capacity and expecting businesses to drop significantly as winter approaches.

But Butlin’s told the news outlet that it is yet to make a decision about the future of those currently on the government’s jobs retention scheme.

It said: “Since we reopened Butlin’s we’ve worked hard to bring back as many of our team as possible whilst ensuring we’re safe and secure.

“There has been no decision made regarding our team who are still furloughed.”

Butlin’s employs 6,000 employees and is owned by Bourne Leisure Group which also operates Haven caravan parks and Warner Leisure Hotels.

In total, the group employs 15,000 members of staff.

Before the government announced the furlough scheme, the group warned that 10,000 jobs would be axed as a result of lockdown.

It has since benefited from hundreds of millions of pounds in government support through loans, furlough and deferred VAT and business rates.

In 2019, Bourne Leisure paid out over £60million to the three families that own the businesses, the Allen, Cook and Harris families.

Thousands of jobs are expected to be culled when the government support ends on October 31.

Currently, the state covers up to 70% of the wages of employees on the scheme with bosses contributing 10% of salaries, national insurance and pension contributions.

From October 1, employers will be required to stump up 20% of wages while the government will pick up the remaining 60%.

Trade Union bosses have warned that a “second wave” of redundancies is on the way if furlough isn’t extended.

In the retail industry, some 43,000 jobs have been lost already after shops were forced to temporarily close during lockdown.

The government has also launched a £2billion Kickstart scheme to get young people into work.

Chancellor Rishi Sunak  announced the scheme in his mini-Budget in the summer as part of efforts to help Britain bounce back from the coronavirus crisis.

Earlier this month, a delay left thousands of job hunters applying for the Kickstart scheme in limbo as employers were told to pull ads.