This week, the Chancellor delivered a mini-budget, setting out the Government's plan to aid the UK economy's recovery from coronavirus (COVID-19) pandemic.
The initiatives put in place are designed to support the worst affected parts of UK industry, and include a six-month VAT cut for the tourism and hospitality sector, discounted restaurant meals in August and an eight-month stamp duty holiday for house purchases under £500,000.
Key Points for Employers
The announcements most relevant for employers include:
- Retention bonus for employers using furlough scheme - the cost of the Coronavirus Job Retention Scheme (CJRS) to employers will rise incrementally from 1 August every month until it closes on 31 October 2020. Amid concern the rising cost will prompt employers to make furloughed staff redundant, the Government will make a one-off payment of £1,000 for every furloughed employee earning over £520 per month, who is retained until the end of January 2021;
- Kickstart Scheme - a new job creation scheme will be created for young people aged between 16-24 who are on Universal Credit and at risk of long term unemployment. The Government will pay these workers' wages for six months whilst they complete a job placement. The contribution will be capped at the applicable National Minimum Wage rate and will be available for up to 25 hours' work per week;
- Training and apprenticeships - £32 million will be invested in the National Careers Service, with employers entitled to a payment of £2,000 for each young apprentice they take on under the age of 25, and £1,500 for each apprentice aged 25 or over.
Originally published July 10, 2020.
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