UK Government Announces Job Retention Bonus, Kickstart Scheme and More

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The Chancellor of the Exchequer, Rishi Sunak, yesterday announced a number of significant measures with the aim of bolstering the UK economy.  These were wide-ranging and included several employment-specific proposals.  These include:

  • Employers will receive a “job retention bonus” of £1,000 for every worker they bring back from furlough and who they continue to employ through January 2021.  Employees must earn at least £520 per month to be eligible.  Nine million workers have been furloughed, so if they were all retained, the cost to the Government would be £9 billion.
  • The Chancellor announced a “kickstart scheme” with the aim of creating “hundreds of thousands” of jobs for young people.  This will subsidise six-month work placements for 16-24-year-olds on Universal Credit.
  • The Government will give employers £1,000 for each 16-24 year old to whom they offer a traineeship.  Traineeships will provide maths, English and CV writing skills as well as 90 hours of unpaid work experience.
  • Employers will be paid £2,000 for every apprentice they take on (£1,500 for each apprentice over the age of 25).

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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