A quarter of UK employers plan to make staff redundant over the next year, a study by a professional body shows.

Research by the Chartered Institute of Personnel and Development (CIPD) reveals 26 per cent of firms have plans to make new or additional redundancies.

The survey, in conjunction with management consultancy KPMG, found nearly a fifth of employers said they would be stricter with workers aged over 65 taking retirement.

John Philpott, chief economist at the CIPD, says businesses have held off from making large-scale redundancies until recently.

"The recession is already putting jobs at risk but many more are in the firing line as employers consider their next move in a deteriorating economic situation," he added.

Research by the two organisations also shows the average cost to a company of making workers redundant is £10,000.

In recent news, the Trades Union Congress said businesses may stop employees from working at home or having flexible hours because of the credit crunch.