This week Chancellor Rishi Sunak announced more support for businesses going forward as we emerge from lockdown. He has pledged £30bn to support businesses and employment over the next year. In this blog, we run through what the new schemes are and how they can affect employers.
What is the Job Retention Bonus?
The Job Retention Bonus provides £1000 per employee that is still employed by January 2021, after being furloughed during the pandemic. The employee must be employed between October and January 2021 and be earning an average of at least £520 a month. Payments will be made from February 2021. Further detail about the scheme will be announced by the end of July.
What is the new Kickstart Scheme?
The government will introduce a new Kickstart Scheme which provides a £2 billion fund to create high quality 6-month work placements for those aged 16-24 who are on Universal Credit.
The funding provided will cover the National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.
New funding for National Careers Service
£32 million funding will be provided over the next 2 years for the National Careers Service to enable more personalised advice on training and work.
Additional £111 million this year for traineeships
For the first time ever, the government will fund employers who provide trainees with work experience, at a rate of £1,000 per trainee.
The government will improve provision and expand eligibility for traineeships to those with Level 3 qualifications and below.
New payment for apprenticeships
A new payment of £2,000 will be paid to employers for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st January 2021. This is in addition to the existing £1,000 payment the government already provides for new 16-18 year-old apprentices.
High value courses for school and college leavers
£101 million is being provided for the 2020-21 academic year to give all 18-19 year olds the opportunity to study Level 2 and 3 courses when there are no employment opportunities available to them.
New funding for sector-based work academies
There will also be funding for sector-based work academy placements.
Other support packages include:
VAT cut on food, accommodation and attractions from 20% to 5%
Businesses in hospitality can register for the East Out to Help Out scheme. This would offer 50% discount in August, up to £10 per head for people dining out and then businesses would claim this back. A website will open on Monday to register and with further information.
To find out more about business support follow this link
https://www.gov.uk/government/publications/a-plan-for-jobs-documents/a-plan-for-jobs-2020
