Jul 17 | 2min read
Coronavirus Economic Recovery Plan – What does this mean for employers?
In a bid to keep as many in work as possible and tackle unemployment among young people, the government have announced further stages in the coronavirus economic recovery plan.
Job retention bonus
With the furlough scheme finishing at the end of October, many organisations will be concerned over the implications of mass redundancies without the scheme’s support. It has now been confirmed that if an employer brings someone back from furlough and keeps them in employment (earning at least £520 a month) until January, they will receive a £1000 bonus.
This scheme is aimed at helping young people (16-24year-olds), The scheme will pay their wages for six months if employers take them on in new jobs. There will be no cap on numbers and the Chancellor urged every employer, to hire as many kick-starters as possible.
‘These will be decent jobs,’ he said, ‘with a minimum of 25 hours per week paid at least the National Minimum Wage (NMW)’. Employers will be able to top up that payment if they wish.
The scheme will open for applications in August and run until December 2021.
The Government will pay employers £1000 to take on trainees and will provide £100 million to create places on Level 2 and 3 courses. Companies will be given £2,000 each to encourage them to hire apprentices and there will be a new bonus of £1,500 for employers taking on an apprentice aged over 25.
The Chancellor said that £250,000 will be invested in careers advisers while the number of work coaches in job centres will be doubled.
Keeping people in work in hard-hit sectors
Hospitality and tourism have been hardest hit by the pandemic so the Chancellor has announced two new measures aimed at protecting jobs in these sectors.
Firstly, VAT will be cut on food, accommodation and attractions from 20 per cent to 5 per cent from 15 July 2020 to 12 January 2021.
Secondly, during August, everyone will get an ‘Eat out to help out’ voucher allowing a 50 per cent discount when they have a meal in a participating pub or restaurant (up to £10 per head for adults and children and applying Monday to Wednesday). Venues will be able to redeem the vouchers quickly, with money in their accounts after five working days, Mr Sunak said.