On Wednesday, Chancellor of the Exchequer Rishi Sunak set out the next phase of the UK’s economic recovery plan in response to the Coronavirus outbreak.
The focus of the measures announced by the Chancellor today was around protecting jobs, particularly for those aged 16-24, who the
Government deem most at risk of long-term unemployment. Measures announced today include:
- Job Retention Bonus – The government will introduce a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021.
- Kickstart Scheme – The Government will fund 6-month work placements for Universal Credit claimants, aged 16-24. 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.
- Traineeship Scheme Expansion – The Government will fund employers who provide trainees with work experience, at a rate of £1,000 per trainee.
- Payments to Hire Apprentices – The government will introduce a new payment of £2,000 to employers in England 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 1st August 2020 to 31st January 2021. This will be in addition to the £1,000 already provided for hiring apprentices aged 16-18.
Other announcements related to the leisure, hospitality and housing sectors, as well as further resources for job centres and careers advice services.
NFDA Director, Sue Robinson, said “It is positive that following the support provided to employers through the Job Retention Scheme, the Government has committed to continuing to help employers retain their workforce and create new roles.
“In particular, the automotive industry has invested heavily in attracting young people to the sector and providing them with unique training and development opportunities. We must minimise the impact of the current crisis and ensure it does not undermine the efforts our sector has been making to invest in its future workforce.
“Although the Chancellor did not announce any specific measure targeting the automotive sector, it is important that we continue to monitor how consumers and automotive businesses perform over the coming months to be ready to act and support the industry if and when required”.
View the full announcement here