CHANCELLOR'S PLAN FOR JOBS
Updated: a day ago
New measures announced on July 8th to assist economic recovery in the wake of Covid 19.
Job Retention Scheme
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.
Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021.
Payments will be made from February 2021.
Further detail about the scheme will be announced by the end of July.
The discount can be used unlimited times and will be valid Monday to Wednesday on any eat-in meal (including on non-alcoholic drinks) for the entire month of August 2020 across the UK.
Businesses will be able to reclaim the value of this vouchers within five days of claiming.
The government will introduce the Eat Out to Help Out scheme to encourage people to return to eating out. This will entitle every diner to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café, pub or other eligible food service establishment.
Participating establishments will be fully reimbursed for the 50% discount.
VAT will be cut on firms operating in this sector to drive consumption for 6 months from 20% to 5% to Jan 12th 2021.
From 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector, the reduced (5%) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK.
This cut will also apply to accommodation and admission to attractions.
Further guidance on the scope of this relief will be published by HMRC in the coming days.
Stamp Duty Cut
A temporary stamp duty holiday to stimulate the residential property market. This will exempt the first £500,000 of all property sales from the tax until March 31 2021, effective immediately.
The government will temporarily increase the Nil Rate Band of Residential SDLT, in England and Northern Ireland, from £125,000 to £500,000. This will apply from 8 July 2020 until 31 March 2021 and cut the tax due for everyone who would have paid SDLT.
Plan to de-carbonise public buildings and cut emissions and grants to assist in insulation for poorly insulated homes, up to two thirds of the cost up to £5,000 per household, and 100% of the cost up to £10,000 per household for those on the lowest incomes.
A £2 billion "kick-start scheme" to create more jobs for young people
Under the £111m scheme, firms in England will be given £1,000 for each new work experience place they offer.
The government is pledging to provide 30,000 new traineeships.
For each "kick-starter" job, the government will cover the cost of 25 hours' work a week at the National Minimum Wage - £4.55 for under 18s, £6.45 for 18 to 20-year-olds, and £8.20 for 21 to 24-year-olds.
Traineeships provide classroom-based lessons in maths, English, and CV writing, as well as up to 90 hours of unpaid work experience.
Scotland, Wales, and Northern Ireland will receive £21m for similar schemes.
The fund will subsidise six-month work placements for people on Universal Credit aged between 16 and 24, who are at risk of long-term unemployment.
Funding is conditional on 25 hours per week minimum for new jobs only and employers will be able to top this wage up.
The scheme will open for applications in August, with the first jobs expected to start in the autumn and run until December 2021 - with the option of being extended.
Payments for employers who hire new 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.
These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18 year-old apprentices, and those aged under 25 with an Education, Health and Care Plan – where that applies.
Full details here of The Plan for Jobs.