This week, Chancellor Rishi Sunak announced a new package of measures including ‘A Plan for Jobs’  aimed at preventing mass unemployment as a result of Covid-19.

 

Job Retention Scheme 

The Coronavirus Job Retention Scheme is due to come to an end on 31 October; however, this week’s announcement includes measures to help employers keep furloughed workers.

UK employers will receive a one-off payment of £1,000 for every furloughed employee they bring back and is still employed as of 31 January 2021. There are some stipulations to receiving the bonus – one of which being that employees must be paid £520 on average each month from November until the end of January which is the equivalent of the lower earnings limit in National Insurance.

Kickstart scheme 

A new “kickstart scheme” will be launched to create new jobs for young people at risk of unemployment due to Covid-19. The fund will subsidise work placements of six months for young people aged 16-24 who are on Universal Credit and are at risk of long-term unemployment.

More Jobcentre support 

As part of the Plan for Jobs, the UK government has announced new funding for Jobcentres, including doubling the number of work coaches for those that have been unemployed for over 3 months. Plans to deliver a new online job finding support service have also been announced.

VAT cuts in hospitality sector 

A reduction in VAT in the hospitality and tourism sector is aimed at encouraging custom and protecting jobs in the industry – which employs over 2 million people across the UK. From Wednesday 8 July until 12 January 2021, VAT will be cut from 20% to 5% on food, accommodation and attractions.

Further details of the summer statement can be found on the GOV.UK website, as well as more information on how the changes will apply to Scotland.