The Government’s Economic Response to Covid-19

Governments Economic Response to Covid-19 | HR Solutions

The Government has made several employment announcements, on 8th July 2020, regarding its economic response to Covid-19. The developments focus specifically on keeping people in jobs, as well as helping to ensure school and university leavers secure their first employment; one of the hardest hit during this pandemic.

Job Retention Bonus

First, a job retention bonus will be awarded to employer’s who bring furloughed employees back to work and who remain employed until January 2021. The Government will reward employers £1,000 per furloughed employee. To be paid the bonus, the employer must be paying the employee at least £520 on average in each month from November through to the end of January 2021.

Further detail about the job retention bonus scheme will be announced by the end of July 2020 and full guidance will be published in the autumn.

Kickstart Scheme

A second financial incentive called the “Kickstart Scheme” is aimed at 16-24-year olds who are at risk of long-term unemployment. The Government will pay employers to create jobs that will pay at least 25 hours per week at the national minimum wage. An initially £2 billion will be made available but there will be no cap on the number of places available.

Apprentices

In addition to the “Kickstart Scheme”, the Government has set out its plan to pay businesses to hire apprentices between 1 August and 31 January 2021.  They will give employer’s £2,000 for each new apprentice they hire under the age of 25 and £1,500 to employers for each new apprentice they hire who are aged 25 and over.

The Chancellor reiterated the Government’s commitment and focus on job retention and in providing people with the opportunity for employment.

HR Support

For more guidance articles relating to the effects of the coronavirus pandemic visit the HR Solutions’ dedicated page ‘Coronavirus Advice and Guidance for Employers’.

HR Solutions are here to provide you with support and advice on any employment-related issues; to find out more call us on 0844 324 5840 or contact us online.

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