In the recent Summer Budget, the Chancellor announced the introduction of various measures aimed at helping businesses.
Job Retention Bonus
If you are an employer that has been claiming support under the Coronavirus Job Retention Scheme (CJRS) for any employees, then you may be able to claim a one-off payment of £1,000 per furloughed employee.
To be eligible, employees need to
- Earn at least £520 per month (above the Lower Earnings Limit) on average for November, December and January
- Been furloughed at any time since the scheme began and legitimately claimed for under the CJRS scheme.
- Been continuously employed until at least 31 January 2021
The bonus can be claimed from February 2021 once payroll information to 31 January has been provided to HMRC.
HMRC have stated that further information will be available on the scheme before the end of the month with full guidance available in the Autumn.
Traineeships
A new traineeship scheme was announced which will pay £1,000 cash bonus for every new work experience place a company provides, starting from September 2020.
Eligibility criteria:
- The scheme is for 16 to 24 year olds in England.
- The work experience must offer “a high-quality work placement of 60 to 90 hours.”
- To provide classroom-based lessons in Maths, English and CV writing, as well as up to 90 hours of unpaid work experience.
- The traineeships must last between 6 weeks up to 6 months.
- Employers are not required to pay trainees for a work placement.
Kickstart Jobs Scheme
A “kickstart jobs scheme” was also announced which will begin from August 2020 until December 2021, with an option for it to be extended
The eligibility is:
- The scheme is for 16 to 24 year olds on Universal Credit
- It will subsidise 6 month’s work placements
- For each “kickstarter job” the cost of 25 hours’ work per week will be covered at National Minimum Wage, though employers can make payments exceeding these if they wish. Current minimum wages are:
- £4.55 for under 18s
- £6.45 for 18 to 20 year olds
- £8.20 for 21 to 24 year olds
Apprenticeships
Financial support for those companies in England that engage new apprentices from 1 August 2020 to 31 January 2021. There are 2 levels:
- £2,000 for each new apprentice aged under 25
- £1,500 for those aged over 25
Employers in England are already receiving payments of £1,000 for new 16-18-year-old apprentices and those aged under 25 with an Education, Health and Care Plan, where it applies.
It is assumed that payments will be paid via normal Apprenticeship payments as at present but no precise details on this as yet.
If you should need assistance around this area, then please call us on 0113 2864486.
Source: BDO
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