Labour has warned of a bleak Christmas for the hospitality sector because the Chancellor’s new job support scheme will not offer enough financial aid or sufficiently incentivise short-hours working.
New analysis by the party has revealed that under the programme, employing two bar or restaurant managers part-time would cost £2,647 a month, compared to £1,973 a month to have one full-time staffer.
The costs to employers – including wages, National Insurance and employer contributions to non-working hours – mean firms would pay over £4,000 for each job they saved under the new six-month scheme.
Commenting on the new data, Shadow Business Secretary Ed Miliband said: “The government presents the job support scheme as a measure that will save jobs. But the facts tell a different story.
“Struggling employers where work has reduced have zero incentive to keep staff on, with it still being significantly cheaper to sack one out of every two members of staff.