The removal of free Covid tests is an “anti-business” measure that risks hitting the economy as it faces spiralling costs and uncertainty, ministers have been warned.

Some workplaces are already seeing teams hit hard by Covid absences, after the number of infections reached its highest level on record last week. Official data suggests almost 5 million people have the disease, or one in 13 of the population. It comes with businesses already facing spiralling costs, as well as higher national insurance payments from this month. Employees are also being faced with a decision over when to test.

There are now concerns that the withdrawal of free Covid tests for most people in England last Friday will lead to high levels of absences that could be avoided, causing more disruption of businesses already struggling. There are pleas for a rethink, with concerns that smaller businesses, as well as hospitality, could be heavily affected.

“The Westminster government needs to understand that we are still living through Covid rather than with it, and change their approach to again provide tests free of charge,” said Dan Shears, the GMB union’s health and safety officer. “The cost of providing tests will likely be dwarfed by the productivity cost of millions of preventable infections.”

Frances O’Grady, the TUC’s general secretary, said that the government had created a “perfect storm” for the economy and workers. “Ending free Covid tests in the middle of a cost of living crisis is terrible for family budgets and for public health,” she said. “With cases soaring again, the last thing workers should be worrying about is how they are going to afford tests. But that’s the position many frontline and low-paid staff have been put in.”

Some unions