The UK should brace itself for more redundancies, according to a new survey.

The CIPD/KPMG Labour Market Outlook ‘Redundancy Special’ report reveals that more than a quarter of employers (26%) have contingency plans to make new or further redundancies in the next year in addition to those already planned. Meanwhile, almost one in five employers claim they are going to enforce the government’s retirement age policy more vigorously. 

The report also shows that the average cost for making workers redundant is now more than £10,000.

Dr John Philpott, chief economist at the CIPD, said: “The spectre of redundancy is beginning to haunt the UK jobs market once again. Employers have held off from making large-scale redundancies until recently but we are now on the verge of a torrent of bad news. The onset of recession is already putting jobs at risk but many more are in the firing line as employers consider their next move in a fast deteriorating economic situation.  Hopefully, the Bank of England will help improve business confidence by continuing to cut interest rates and signaling that further sharp rate cuts are on the cards in the coming months so as to prevent a nightmare scenario for jobs.”