Summer Statement: Sunak announces new Job Retention Bonus Scheme
Chancellor of the Exchequer Rishi Sunak has delivered his Summer Statement, laying out the Government’s plans to recover the economy from the dents it has suffered during the COVID-19 pandemic.
Keep reading to find out how your business will be impacted by the upcoming initiatives, and how you can take advantage of the brand new Job Retention Bonus Scheme.
The furlough scheme will now begin to wind down in a flexible and gradual way until the end of October, at which point companies will be incentivised to bring back staff who have previously been furloughed. The Government will reward employers with £1,000 for every member of staff who is brought back from furlough and kept on until at least January 2021.
Businesses will have to qualify for this retention bonus by ensuring their employees earn at least £520 per month from November (when the furlough scheme will be over) until January.
The newly-announced Kickstart Scheme will support those aged between 16 and 24 who are at risk of long-term unemployment. The Government will cover the cost of them working 25 hours per week for the National Minimum Wage, leaving employers with the opportunity to top that up as they see fit.
Employers will be able to apply to partake in this scheme from August 2020, and there will be no cap on the number of places available. Sunak has encouraged businesses of all sizes to take advantage.
The Government will also pay employers £1,000 to take on new trainees, and will offer financial incentive to employers to create apprenticeships.
How can IRIS Payroll help?
IRIS is here to help and our payroll solutions can assist you as you adapt to all of the changing legislation surrounding furlough, and more. We are constantly updating our software to help our customers with compliance.
Visit our resources hub for more support on COVID-19 and adapting to the next normal.