What is the plan for jobs?

As the Covid-19 crisis develops, so does the package of UK Government support. Here are some new initiatives

We are now in the second phase of a three-phase plan to steer the UK economy through the coronavirus pandemic. The first phase was the £160 billion package to pay the wages of 12 million furloughed workers and support companies through grants, loans and rates cuts. The third phase will focus on rebuilding and will be announced with the autumn budget. This second phase is about supporting jobs by focusing on skills and young people. It includes:

The Job Retention Bonus 

UK employers will receive a one-off bonus of £1,000 for each previously furloughed employee who remains continuously employed through to the end of January 2021. Employees must earn above £520 per month.

The Job Support Scheme 

Announced by the Chancellor last week, from November 1 the government will contribute towards the wages of employees who are working fewer hours due to decreased demand. Employers will continue to pay staff for the hours they work. But for the hours not worked, the government and the employer will each pay one third of the usual salary, capped at £697.92 per month.The scheme will last for six months, helping to keep employees attached to the workforce.

The Self Employed Income Support Scheme 

In the same announcement the Chancellor extended the Self Employment Income Support Scheme. Those who are currently eligible for SEISS and continue to face reduced demand will be offered a taxable initial lump sum worth 20% of average monthly profits from November to January, up to a total of £1,875. A second grant will be announced to cover

As the Covid-19 crisis develops, so does the package of UK Government support. Here are some new initiatives

We are now in the second phase of a three-phase plan to steer the UK economy through the coronavirus pandemic. The first phase was the £160 billion package to pay the wages of 12 million furloughed workers and support companies through grants, loans and rates cuts. The third phase will focus on rebuilding and will be announced with the autumn budget. This second phase is about supporting jobs by focusing on skills and young people. It includes:

The Job Retention Bonus 

UK employers will receive a one-off bonus of £1,000 for each previously furloughed employee who remains continuously employed through to the end of January 2021. Employees must earn above £520 per month.

The Job Support Scheme 

Announced by the Chancellor last week, from November 1 the government will contribute towards the wages of employees who are working fewer hours due to decreased demand. Employers will continue to pay staff for the hours they work. But for the hours not worked, the government and the employer will each pay one third of the usual salary, capped at £697.92 per month.The scheme will last for six months, helping to keep employees attached to the workforce.

The Self Employed Income Support Scheme 

In the same announcement the Chancellor extended the Self Employment Income Support Scheme. Those who are currently eligible for SEISS and continue to face reduced demand will be offered a taxable initial lump sum worth 20% of average monthly profits from November to January, up to a total of £1,875. A second grant will be announced to cover the period from February to April 2021. 

The Kickstart Scheme 

Available in England, Scotland and Wales, the £2bn Kickstart Scheme will create hundreds of thousands of fully subsidised jobs for people aged 16-24, giving them a foot on the ladder of employment. Employers from all sectors can sign up to the scheme at gov.uk/kickstart.

Temporary reduced VAT 

A temporary cut in the VAT rate for hospitality and leisure businesses, from 20 per cent to five per cent, came into effect across the UK in July and will end on March 31 2021. Eight percent of the UK’s workforce – 2.4 million people – were employed in hospitality, accommodation and attractions before lockdown. The sector is particularly important to tourism regions and to people without a degree or higher qualification, and could be a key contributor to the jobs recovery post-Covid.

Deferred VAT 

Up to a million businesses who deferred their 2020 VAT bills will be given more breathing space. Rather than paying a lump sum at the end of March 2021, they will be able to make 11 smaller, interest-free payments during the 2021-22 financial year. 

A big step forward on the road to recovery 

UK government support for businesses large and small is evolving as we navigate through the coronavirus crisis and keep the economy moving.

Support in numbers

  • A £3 billion green investment will help support around 140,000 jobs, upgrade buildings and reduce emissions
  • £142 million is to be spent to repair and maintain around 100 courts across England
  • £1.5 billion is earmarked for hospital maintenance and upgrades
  • Over £1 billion will be invested to rebuild schools in the worst condition in England, plus £760 million this year for key maintenance work on schools and colleges
  • £1 billion will make public buildings, schools and hospitals greener, helping the country meet its ambitions of net zero by 2050
  • £100 million will be spent upgrading the local roads network