Chancellor reveals ‘a plan for jobs’ package
Blog | 8th July 2020
Rishi Sunak has announced a new Job Retention Bonus to help firms retain furloughed workers. Under the plan, employers will receive a one-off bonus of £1,000 for each furloughed employee who remains continuously employed until 31 January 2021. Employees must earn above the lower earnings limit of £520 per month on average between the end of the Coronavirus Job Retention Scheme (31 October 2020) and 31 January 2021. Payments will be made in February 2021 and further details of the scheme will be announced by the end of this month.
The government are also introducing a new Kickstart Scheme, a 6-month work placement aimed at those aged 16-24 who are on Universal Credit and are deemed to be at risk of long-term unemployment. Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum auto enrolment contributions.
For the first time ever, the government will fund employers who provide trainees with work experience, at a rate of £1,000 per trainee.
Additionally, the government will introduce a new payment of £2,000 to employers in England 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 1 August 2020 to 31 January 2021. These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18-year-old apprentices, and those aged under 25 with an Education, Health and Care Plan – where that applies.
Further information on the governments policy paper – A Plan for Jobs 2020 can be found here:
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