Update: A "Plan for Jobs" Announced by UK Chancellor

A Job Retention Bonus

In an effort to discourage employers from making redundancies when the Coronavirus Job Retention Scheme (“CJRS”) is tapered down and eventually closed by the end of October 2020 (see our previous article on changes to the CJRS here), for each employee who has, at some point, been furloughed under the CJRS but who remains employed up to 31 January 2021, their employer will be entitled to receive a one-off Job Retention Bonus of £1,000. It is not yet clear whether this will include any employee who is under consultation or notice of termination by reason of redundancy as at 31 January 2021.

The incentive will be payable in respect of employees who reach the equivalent of the lower earnings limit in National Insurance, equating to at least £520 on average per month between November 2020 and January 2021.

The Kickstart Scheme

Recognising that young people are particularly at risk of long-term unemployment, the government will subsidise employers directly through the “Kickstart Scheme” to create new jobs for those aged between 16 and 24 years old.

Subject to various conditions being satisfied, (details of which are expected to be announced in the coming days), the government will pay the wages of “Kickstarters” for 6 months from August 2020. The government wage contribution will be capped at the relevant National Minimum Wage payable for 25 hours of work per week. There will be no cap on the number of places available under the Kickstart Scheme.

Support for Traineeships and Apprentices

Employers will be incentivised to hire new trainees and apprentices. The government will pay £1,000 to each employer who takes on new trainees and triple the number of places available.

In addition to the existing £1,000 payment for new 16-18 year old apprentices and those aged under 25 with an Education, Health and Care Plan, employers will be given £2,000 for each new apprentice that they hire under the age of 25 and £1,500 for each new apprentice aged 25 and over. The support for traineeships and apprentices is likely to last for 6 months from August 2020.

We await further detail to be published by the government on these new measures and will provide updates once this is available. However, the measures announced appear to put a firm end to any calls to extend the furlough scheme beyond October 2020.

If you have any further queries about the CJRS or these new measures, please get in touch with our Employment Team.