Following the Chancellor’s lunchtime announcement, here’s a summary of a few of the new schemes announced today:
Job Retention Bonus
If you continue to support your employees, the Government will support you. That’s the clear message today.
Rishi Sunak announced a £1k bonus in January for every furloughed member of staff you bring back to work. To qualify, returning staff must earn at least £525 per month in November, December, and January.
This is a big announcement for us. So far, we’ve claimed in excess of £1.4million furlough grants for our clients. We understand the impact this pandemic has had on cash flow and will do everything we can to claim the bonus for all eligible staff.
VAT Cut and ‘Eat Out to Help Out’ Scheme
Hospitality and tourism sectors have been hit hard by the pandemic. Today, a temporary VAT cut from 20% to 5% was
announced, lasting until 12th January 2021. Additionally, a new discount scheme aims to restore the public’s confidence in eating out. The Government will offer a 50% discount on meals eaten in pubs and restaurants on a Monday, Tuesday and Wednesday throughout August.
Kickstart Scheme
To reduce rising unemployment, the Government confirmed additional funding for apprenticeships, traineeships, and support for those at risk of long-term unemployment.
We advise our clients not just to survive but to thrive, viewing this as a chance to focus on long-term business benefits. The flexible furlough scheme supports employees who can’t work due to childcare or health issues but may leave some businesses short on resources. This is a great time to consider hiring an apprentice or trainee to cover shortages while being trained by those on flexible furlough. Meanwhile, ambitious businesses can upskill furloughed workers with online training to prepare them for higher-skilled roles upon their return.