Up to seven million private sector workers could have their wages paid by the state as firms flock to sign up to the Government’s coronavirus furlough scheme.

More than 60% of companies have already said they plan to take advantage of it – with over 40% aiming to furlough at least half their workforce.

British Airways, mega-wealthy Sir Philip Green’s Arcadia high street empire and car maker Nissan have become the latest big employers to announce they would use the scheme.

Staff are “relieved” but the Government must still do more, unions say.

The mass take-up should avoid large scale job losses.

But it threatens to leave the Government with a gigantic bill.

The Treasury estimates it will cost £10billion for every three million people using the Coronavirus Job Retention Scheme for three months.

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Nissan has furloughed most of its 6,000 employees at its Wearside plant after saying it will remain closed for the rest of the month at least (
Image:
PA)

The scheme is aimed at preventing companies affected by the pandemic unleashing large scale redundances.

Employers can claim 80% of furloughed employees’ usual monthly wage costs, up to £2,500 a month. A survey by the British Chambers of Commerce found over 60% of firms expect to furlough at least some of their workforce over the next week.

That could equate to more than 850,000 companies, and as many as seven million workers.

British Airways and unions have agreed a modified version of the Job Retention Scheme.

More than 30,000 staff will be suspended because of a slump in bookings but will get 80% of their wages paid by the Government.

But there will be no £2,500 monthly cap, meaning BA will pay any extra wages and allowances. Around 28,000 will benefit as a result.

Unite national officer for aviation Oliver Richardson said: “Given the incredibly difficult circumstances that the entire aviation sector is facing this is as good a deal as possible for our members.”

GMB national officer Nadine Houghton said: “GMB members working for BA are relieved to finally have some certainty after what has been an extremely worrying time.

Staff at Arcadia, whose chains include Topshop, Topman and Dorothy Perkins, will be among those whose wages are temporarily paid by the taxpayer (
Image:
Getty)

“We believe the current deal secures this including... protection of terms and conditions and a ‘pause’ on the current redundancy consultation.

“But there are significant challenges for the industry and... the Government can’t take its eye off the ball.

“GMB is calling for more Government intervention to protect the livelihoods of many more workers across the sector.”

Staff at Arcadia, whose chains include Topshop, Topman and Dorothy Perkins, will be among those whose wages are temporarily paid by the taxpayer despite Sir Philip, whose reputation was shattered by the collapse of BHS, and his wife having an estimated fortune of nearly £1bn.

Nissan has furloughed most of its 6,000 employees at its Wearside plant after saying it will remain closed for the rest of the month at least.

The Government has promised that “all viable small firms” hit by coronavirus will be able to get rescue funding.

The Treasury last night announced changes to extend the scope of firms that can get loans. It follows criticism of some banks.

Your rights to time off work during the coronavirus outbreak

Employers have a duty to protect their workers at all times - and right now, they should be offering updates, advice, guidance, and ensuring hygiene procedures are in place to protect staff.

Here's what you need to know:

  • If you've been told to self isolate, you will receive pay from day one from either your employer, or the Government under Statutory Sick Pay laws. This will be £94.25 per week for up to 28 weeks.

  • Anyone who displays any signs of coronavirus - even mild ones - should speak to their boss or HR department as soon as possible.

  • Have you been to an affected area, come inTO close contact with someone who has coronavirus or are waiting for coronavirus test results? If yes, you must self-isolate yourself for 14 days.

  • If you have a persistent cough, fever or flu-like symptoms you should self isolate for seven days.

  • Concerned workers can get a sick note or fit note by calling NHS 111.

  • You don’t have a right to work from home just because you’re worried about catching Coronavirus, for example if you have to travel to work on public transport. However, you may be able to negotiate arrangements directly if you have concerns about coming into the office.

  • If you have a pre-existing condition which would make you very vulnerable to Coronavirus such as an auto-immune illness, it might be more important for you to work from home.

  • Parents who need time off for emergency childcare can't legally be refused time off work - however this may be unpaid.

We've got a full guide on your rights to emergency time off work during the coronavirus outbreak, here.

For coronavirus advice on school closures, sick pay, working from home and holiday or event cancellations, click here.

The Government is also stopping lenders from requesting personal guarantees for loans under £250,000 and making operational changes to speed up lending approvals.

Adam Marshall, director general at the British Chambers of Commerce, said: “We’re pleased the Chancellor is listening and responding to the real-world concerns of firms who are urgently trying to access financial support.”

A survey published yesterday by the Office for National Statistics found 27% of firms said they were reducing staff levels in the short-term.

However, the research was done days after the Job Retention Scheme was announced. An updated survey will be published in a fortnight, showing if companies backtracked and keep staff on or rehired others.

Research by Save the Children has found one in 10 parents have had to leave their jobs to look after their children in the crisis. About the same number taken unpaid leave to care for their kids.

Meanwhile, a report found more than 750,000 self-employed people may miss out on Government support during the pandemic.

The findings from the Centre for Decent Work and Productivity at Manchester Metropolitan University and the Enterprise Research Centre suggests sole traders who have recently started up are most vulnerable to a near-total loss of income.

This risks “decimating a generation of early-stage entrepreneurs”.

Consumer confidence sank to a record low by the end of March, according to research carried out by accountancy giant Deloitte.