Fashion retailer Next has announced its to cut sick pay for unjabbed staff forced to self-isolate due to contact with someone who has tested positive.

The controversial move is needed, the firm says, to balance staff and shareholder news.

It follows similar moves by IKEA and the supermarket Morrisons. Businesses have been hit by the cost of large number of staff off work after positive test results.

Current government guidance requires unvaccinated people to self-isolate if they come into close contact with someone who has tested positive. But this does not apply to the fully vaccinated who receive full sick pay.

A spokesperson for Next said: "NEXT will pay company sick pay if you test positive with Covid regardless of vaccination status. However, if you are unvaccinated and negative and come into contact with a positive case and you are required to self isolate, NEXT will pay statutory (SSP) sick pay unless there are mitigating circumstances."

Read more: Can employers reduce sick pay for unvaccinated staff? Business Expert Margaret Adewale of HR Dept Gloucester