Chancellor Rishi Sunak this week unveiled a £30bn Plan for Jobs package in a bid to provide financial support to employers affected by the pandemic. In brief, the Plan’s main goal is to “protect, support and create jobs”.
As part of the Plan, incentives will be provided for employers in order to tackle potentially high levels of unemployment. So, what are these incentives?
Plan for Jobs incentives
The Plan for Jobs includes several incentives that will be of interest and use to employers. These will assist in job retention, creation, and getting businesses back to pre-pandemic operating levels.
- Employers receiving a £1,000 ‘job retention bonus’ for every furloughed employee that they bring back to work and keep until January 2021. The employee must earn at least £520 per month for the employer to be eligible for the ‘bonus’ for them.
- £1,000 for employers who hire young people under the legal concept of ‘traineeships’ for unpaid work experience.
- The Government paying wages at NMW/NLW for six months of young people hired under a new ‘Kickstart scheme’. To avail of this, employers must apply to the scheme and take on someone aged 16-24 to a ‘new’ job for at least 25 hours a week.
- The Government giving employers £2,000 each as an encouragement to take on new apprentices. £1,500 will be given to employers who take on an apprentice over 25 years of age.
The Chancellor went on to say: “I will never accept unemployment as an unavoidable outcome. We haven’t done everything we’ve done so far just to step back now and say, ‘job done’. In truth, the job has only just begun.
While difficult times and tough decisions lie ahead for all employers, the incentives included in the Plan for Jobs will provide some help when reopening and returning to work.
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