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On Wednesday 8 July, the Chancellor Rishi Sunak delivered his Summer ‘mini budget’ which detailed proposed measures to support and protect businesses and employees from further impact from the coronavirus pandemic.

 

Here is a quick round-up of the announcements that will affect employers with more details to follow as we receive the updates of how they will work practically.

 

Job Retention Bonus

 

The Government will introduce a one-off payment to employers of £1,000 for every employee who has returned to work from furlough and is still employed as of 31 January 2021. Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021. This will see some businesses welcome a sizable lump sum in the new year that can help their boost their cashflow following a difficult Spring/Summer.

 

Business Support for Apprenticeships and Trainees

 

Recognising that the younger, less experienced employees may be harder hit with the economic crisis and competitive job market, the government has announced plans to encourage and support companies look to take on apprentices. Businesses are entitled to a £2,000 one-off payment for every new apprentice they take on under the age of 25. (This is in addition to the financial incentives already offered).

 

Kick Start Scheme

 

The government will introduce a new ‘Kickstart Scheme’ in Great Britain. This £2 billion fund will create hundreds of thousands of high quality 6-month work placements suitable for 16-24 year olds who are on Universal Credit and deemed to be in the risk group of long-term unemployed. Funding will cover 100% of the National Minimum Wage for 25 hours per week along with National Insurance contributions and the minimum automatic enrolment pension contributions.

 

Creating New Jobs

 

Funds will also be invested into supporting people who are out of work to enable them to develop skills, access advice and find job opportunities along with infrastructure to create new jobs in sectors such as construction, medical and environmentally friendly areas of work.

 

Looking To The Future

 

This is all positive news for businesses who have weathered the storm and are able to welcome back their furloughed staff and look to make new hires over the coming months. However, sadly many businesses will still be feeling the pain caused by the Covid-19 pandemic, the biggest threat the UK has faced in decades.

 

If you are struggling to get up to speed with HR issues that have come to light recently, including flexible working, furlough, changing terms of contracts and/or making redundancies, then please feel free to reach out to our team of Employment Law Experts who can provide you with professional advice to help guide you through these difficult times.

 

Call our team on 01256 844888, email enquiries@lambbrooks.com or speak to our online assistant who is available to chat 24/7.

 

Other articles you may be interested in reading:

Job Losses to Coronavirus Rising Rapidly

Leading a Team During a Crisis

Death of the Office? Not Just Yet!

 

The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice.  The law may have changed since this article was published.   Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.