The Chancellor’s statement outlines plans to boost the economy and Rishi Sunak said “the job has only just begun”
A summary of the measures include:
- Hospitality sector will see VAT cuts from 20% to 5% on food, accommodation and attractions
- Job Retention Bonus for companies – £1,000 for every employee brought back from the furlough scheme from November to January, potentially for 9 million employees at a cost of £9billion
- Stamp Duty will be cut by increasing the threshold from £125,000 to £500,000 until end of March 2021 to boost the property market
- “Eat Out to Help Out’ Monday – Wednesday in August. A discount scheme of 50% off food and non-alcoholic drinks up to £10 per head
- £2bn Kickstart Scheme to create 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.
- Introducing a payment of £2,000 to employers in England for each new apprentice they hire aged under 25
- A £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st January 2021.
Firms to get £1,000 for every worker brought off furlough
Chancellor Rishi Sunak has set out ambitious plans to retain construction jobs and give young people a start in the industry. His plan for jobs is promising £1,000 payouts to firms bringing staff off furlough and back to work.
The Jobs Retentions Bonus for furloughed workers will be paid out to employers who still have staff in real full time work from November to the end of January. For businesses to get the bonus, the employee must be paid at least £520 on average in each month. To encourage firms to take on youngsters he pledged to subsidise a six-month work placement programme for people on Universal Credit aged between 16 and 24.
For this new generation of Kickstarters, firms will receive a grant of around £6,500 for each placement. Sunak also pledged to provide £2,000 to employers for each new apprentice they hire aged under 25, between August this year and January 2021. For apprentices aged over 25, employers will receive £1,500 during the same period.