On Wednesday 8th July 2020, the Chancellor announced the next step in UK Government support for employers. The support package is wide ranging and we’ve summarised the key points below.
Furlough bonus scheme
If you are an employer who has furloughed staff and bring them back to work, then you could be in line to receive a £1,000 bonus. To be eligible, you must continue to employ them until January 2021 and pay them at least £520 per month from November to January. The bonus will be paid from February 2021. Will this make a difference? Not likely as it is less than half of the average monthly salary in the UK. However, it will be a boost for some employers as they look to invest in 2021.
The second plank of the UK Government support for employers is the launch of the ‘kickstarter scheme’. From next month, employers will be able to register for a scheme to employ 18-24 year olds. The jobs need to be for a minimum of 25 hours per week paying at least minimum wage. Employers will be able to reclaim minimum wage and overheads for 6 months. To use the Chancellor’s example, this could equate to £6.5k for a 24 year old. We don’t know exactly what counts as overheads, but more information will follow in the coming weeks.
UK Government support for employers - hospitality
To help safeguard jobs in hospitality industry, VAT will be reduced from 20% to 5% for the following:
- Eat in or takeaway food
For the month of August, if you eat out from Monday to Wednesday, you could be due up to £10 a head off your meal. Restaurants will need to apply to get the refund.
UK Government support for employers - training schemes
Employers will receive £2k if they take on apprentices. For the first time a £1.5k payment will be made if you take on an apprentice over the age of 25.
Clearly this is an evolving picture but if you have any queries about how this could impact you, call Rob on 07494 161169 or Nicci on 07908 875146. Click here for information about the services we offer.