In his mini budget on 8th July the Chancellor said that the UK is facing “significant” job losses but that the government would do “all we can” to help prevent job losses. He does not accept unemployment as inevitable against a 25% decline in GDP in two months.
The steps that he announced include
A jobs retention bonus. Where an employer brings back a furloughed worker and continues to employ them until January 2021 they will receive a £1,000 bonus. The estimated cost, to help retain people in work, is £9bn.
“Kickstart scheme”. This scheme will pay employers to create new jobs for 16 to 24-year olds who are at risk of long-term unemployment. The jobs must be for at least 25 hours a week and pay the minimum wage.
A fund of £100m is available to create places on Level 2 and 3 courses.
Firms that hire apprentices will be paid £2,000 or £1,500 for apprentices over 25.
The number of people working in job centres will be doubled.
£2bn Green Homes Grant, under which homeowners can apply for grants of up to £5,000 to make their homes more energy efficient. In addition £1bn will be spent on improving energy efficiency in public buildings. It is expected that these measures will create 140,000 jobs.
Away from the jobs market, there will be no stamp duty on the first £500,000 of a home purchase until March next year and a cut in VAT from 20% to 5% in the hospitality and tourism sectors.
At SHU Law we are already receiving a number of enquiries from workers concerned at the prospect of redundancy once the furlough scheme ends in October. SHU Law is able to advise on how to navigate discussions with your employer and to help employees arrive at the right package. Contact us on 0114 2256666 for further information, help and advice.