Plan for Jobs proposals

The Chancellor has outlined a range of measures to help the economy recover from the COVID-19 pandemic.

Job Retention Bonus

  • A one-off payment of £1,000 will be made to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021.
  • Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021.
  • Payments will be made from February 2021.
  • Further detail about the scheme will be announced by the end of July. 
  • The Chancellor also confirmed that the furlough scheme will finish at the end of October 2020 and there will, therefore, be no extension of the scheme.

Kickstart Scheme

  • A new Kickstart Scheme will be introduced comprising a £2 billion fund to create 6-month work placements aimed at those aged 16-24 who are on Universal Credit and are deemed to be at risk of long-term unemployment.
  • Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.

Traineeships

  • Extra funding (£111 million this year) will be given for traineeships in England, to fund high quality work placements and training for 16-24-year olds.
  • The government will fund employers who provide trainees with work experience, at a rate of £1,000 per trainee.
  • The government will improve provision and expand eligibility for traineeships to those with Level 3 qualifications and below.

Apprentices

  • Employers in England will qualify for a payment of £2,000 for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1 August 2020 to 31 January 2021.
  • These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18-year-old apprentices, and those aged under 25 with an Education, Health and Care Plan.