Summer Statement – Key Points for Employers
Posted on 9th July 2020 at 19:36
This statement shared by The Chancellor Rishhi Sunak this week was designed to stimulate jobs for the younger generation and a drive to retain existing jobs.
We have summarised the points here taken from the Government website. Some of the measures will be great for employers looking to support younger workers and take on new trainees. There is also a job retention bonus to help employers retain staff after the CJRS scheme ends.
Corona Virus Job Retention Scheme (CJRS)
This will close on 31st October 2020 as planned and no further extension has been offered.
Job retention Bonus
The government will introduce a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021.
Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021.
Payments will be made from February 2021.
Further detail about the scheme will be announced by the end of July.
The Kick Start Scheme
The aim is to create hundreds of thousands of high quality 6-month work placements 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 automatic enrolment contributions.
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 1st August 2020 to 31st 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.
Employers who provide trainees with work experience will benefit from £1000 per trainee.
You can find out more information on all these schemes by clicking here
If you need any advice or support please contact me Bina Briggs, Plain Talking HR
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