In today’s Summer Statement, Rishi Sunak explained that we are now entering the second element of his three-phase “Plan for Jobs”.
The key initiatives comprised in the second phase, while temporary, are intended to support the UK’s economic recovery and are as follows:
This note focuses on the first two of those changes which will directly affect employers generally and sets out the support available.
To date approximately 1 million businesses have furloughed more than 9 million jobs through CJRS. This represents more than a quarter of the UK workforce during a period in which the economy contracted by 25%.
While Mr Sunak has famously declared that not every job can be saved, he said today that he will “never accept unemployment as an unavoidable outcome” and recognised that the job of protecting employment has only just started. However he made it clear that the CJRS would not be extended beyond the existing end date of 31 October 2020.
For more information on the furlough scheme, read our insight article.
Instead the new ‘Job Retention Bonus’ (JRB) scheme will be introduced at an anticipated cost to the Treasury of £9.4 billion. This is anticipated to be the most expensive element of the package of support measures to be included in phase two.
Under the JBR:
Further information will be published by the end of July.
Under the Kickstart scheme the government will pay young people’s wages for up to six months representing a grant worth around £6,500 per young person. This sits alongside an expanded Youth Offer delivered via DWP. Initial funding of £2bn is available now with no cap on the number of places to be funded.
The scheme will cover:
The government will also provide an additional £111 million this year for:
Eligibility will be extended to those with Level 3 qualifications and below.
Employers in England who hire new apprentices will receive a payment of:
These payments will be in addition to the existing £1,000 already paid in respect of new 16-18 year-old apprentices, and those aged under 25 with an Education, Health and Care Plan.
For more information, please contact Caroline Harwood or your usual Crowe contact.
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