The chancellor Rishi Sunak has announced new measures to support business and employment as a result of Covid-19 impact. We will keep you updated as further details are announced, but please find a summary below:-
Furlough job retention
- UK Employers will receive a one-off bonus of £1,000 for each furloughed employee who is still employed as of 31 January 2021.
- 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.
- 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.
- Where hiring apprentices aged 25 and over, business will receive a payment of £1,500.
Tourism and Hospitality sector
- A new “Eat Out to Help Out” discount scheme will provide a 50% reduction (up to £10 per head) for sit-down meals in cafes, restaurants and pubs across the UK from Monday to Wednesday every week throughout August 2020.
- The rate of VAT applied on most tourism and hospitality-related activities will also be cut from 20% to 5%. This will remain at 5% until January 2021.