July Update

Kickstarter Scheme

The government announced on 8^th July the launch of the kickstart scheme, to help the younger unemployed a £2bn fund has been set to help 16-24 year olds in unemployment to get high quality 6 month placements. The funding from the government will cover 100% of the national min wage, NI contribution and also the employer min automatic enrolment contributions

Key Details:

• £2bn fund being set up to increase young employability

• 16 – 24 years olds

• Must be registered on Universal Credit for at least a month deemed to be at risk of long term unemployed

• Funding will cover up to 25 hours a week at min wage

 

Traineeships for young people

There will be an additional £111m made available this year for trainee roles in England. This will be to create work placements for the younger unemployed 16-24 year olds. The gov will provide employers that offer trainee roles funding of £1000 per trainee they take on. The aim is to triple participation in traineeships. Provisions and eligibility will be improved for traineeships for level 3 qualifications and below.

Key Details:

• £111m additional being made available to increase traineeships

• 16 – 24 year olds

• Funding of £1000 per trainee will be given to employers that offer to provide trainees with work experience

 

Grants for employers who hire new apprentices

So we all know the government already offers a grant for taking on apprentices (age dependant), however with all the covid 19 pandemic and a rebuild for the economy on the cards now, the government has now launched a further enhanced package for taking on apprentices. The scheme will start from 1^st August 2020 and last till 31^st January 2021. The below payments will be on top of the normal £1000 payment the government already provides for taking on 16-18 year old apprentices.

Key Details:

• £2000 payment for taking on an apprentice below the age of 25

• £1500 Payment for over 25

• Scheme will run from 1^st Aug 20 – 31^st Jan 21

 

Job Retention Bonus

The Job Retention Scheme(CJRS) has helped over 1 million employers so far and protected over 9 million employees. A huge amount of support from the government… but it doesn’t stop there! While we are in the phase of winding down the help we have been receiving since March the government is now brining in something to reward employers for bringing back employees and also keeping them in work till at least Jan 21 too!

Key Details:

• Furlough Scheme will slowly come to an end in October

• The government will pay employers a one off payment of £1000 for every furloughed employees bought back to work and kept in work till the end of January 2021

• Employees must earn above the lower earnings limit (£520 per month) on average between the end of the CJRS and Jan 21

• Payments will be made Feb 21

• Further details will be released at the end of July

Vat Changes

The government released a statement on 8^th July 2020 for changes in VAT rates for the hospitality, hotel and holiday accommodations along with some certain attractions too. The cut’s have been announced to 5% from 20% and will come in to effect from 15^th July 2020 – 12 July 2021.

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