CORONAVIRUS - 13.07.2020

A Plan for Jobs - what does it mean?

To spur the UK’s recovery from the coronavirus pandemic, the Chancellor presented his “Plan for Jobs” to Parliament on 8 July 2020. What are the key employment points?

Job retention bonus. Under the Plan for Jobs (see Follow up ), there will be a new one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed until at least 31 January 2021. Employees must earn at least £520 per month on average between the end of the Coronavirus Job Retention Scheme (CJRS) and 31 January 2021. Payments will be made from February 2021. Further information about the scheme will be announced by the end of July 2020 and full guidance will be published in the autumn.

Pro advice. This payment will only be made in respect of those employees who have been furloughed at any point and legitimately claimed for under the CJRS; it won’t cover other staff. The £520 monthly minimum average earnings threshold for November 2020 to January 2021 is the equivalent of the lower earnings limit for NI.

Kickstart scheme. A new kickstart scheme in Great Britain will fund the direct creation of six-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 employers’ NI and the minimum auto-enrolment employer pension contribution.

Traineeships. Employers in England who provide work experience placements for those aged 16-24 on traineeships will receive a payment of £1,000 per trainee.

New apprenticeships. From 1 August 2020 to 31 January 2021, employers in England will receive a payment of £2,000 for each new apprentice they hire aged under 25, and a payment of £1,500 for each new apprentice they hire aged 25 and over.

Pro advice. These apprenticeship payments will be in addition to the existing £1,000 payment that the government already provides for new 16-18 year-old apprentices.

A new job retention bonus will encourage you to keep on furloughed employees, there will be payments if you hire new apprentices or provide trainees with work experience and funding if you offer new kickstart scheme placements.

Follow up

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