Here is a brief overview of the announcements made by Chancellor Rishi Sunak:
- A Jobs Retention Bonus, giving £1,000 to businesses who bring back employees from furlough
- A temporary VAT cut for hospitality and tourism – down from 20% to 5%
- An “Eat Out to Help Out” scheme for August, giving a discount to people eating at cafes, restaurants and pubs
- A rise in the threshold of stamp duty from £125,000 to £500,000
- A “kickstart scheme” to get unemployed 16 to 24-year-olds into work
- New payments for businesses hiring apprentices
There are some elements here that are particularly relevant to our industry:
Jobs Retention Bonus
As part of the plan to support jobs, a Job Retention Bonus will be introduced to help firms keep furloughed workers. UK Employers will receive a one-off bonus of £1,000 for each furloughed employee who is still employed as of 31 January 2021.
The “kickstart scheme” to get unemployed 16 to 24-year-olds into work
A new £2 billion Kickstart Scheme will also be launched to create hundreds of thousands of new, fully subsidised jobs for young people across the country. Those aged 16-24, claiming Universal Credit and at risk of long-term unemployment, will be eligible. Funding available for each six-month job placement will cover 100% of the National Minimum Wage for 25 hours a week – and employers will be able to top this wage up.
New payments for businesses hiring apprentices
A total of £1.6 billion will be invested in scaling up employment support schemes, training and apprenticeships to help people looking for a job. Young people, who are amongst the worst hit by the crisis, will benefit from this. This includes:
- Businesses will be given £2,000 for each new apprentice they hire under the age of 25. This is 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.
- A £111 million investment to triple the scale of traineeships in 2020-21 ensuring more young people have access to high quality training.
- £17 million of funding to triple the number of sector-based work academy placements in 2020-21
- Nearly £900 million to double the number of work coaches to 27,000;
- Over a quarter of a million more young people to benefit from an extra £32 million investment in the National Careers Service.
We will of course keep you updated on the practicality of these schemes when we hear more!