Job Retention Bonus Scheme updated
The Chancellor announced a new job retention bonus as part of his ‘Plan for Jobs’ on 8 July 2020. The aim of the Plan is to reward employers who bring workers back from furlough and retain them in employment until the end of January 2021. If they do so they will qualify for a £1,000 bonus.
Further guidance on the scheme was published on 31 July.
The Chancellor confirmed the current furlough scheme which has been used to support a substantial number of workers and was introduced as the coronavirus pandemic hit the UK, would be wound down “flexibly and gradually” until the end of October.
Details of the new job retention bonus scheme includes:
- You must be an employer and bring back someone who was furloughed
- You must continuously employ an employee brought back from furlough through to January 2021
- If you do you will receive a £1,000 bonus per employee
- To qualify for the bonus the employee must be paid above the lower earning limit for National Insurance purposes – at least £520 per month in each month from November to the end of January
In addition to the Government rewarding employers bringing existing workers back from furlough, from August 2020 to January 2021, any business that hires a new young apprentice aged 16 to 24 will receive £2,000, while those that hire new apprentices aged 25 and over will be paid £1,500.
This is in addition to the £1000 incentive the Government already provides for employers taking on an apprentice aged between 16-18 or under 25 with an Education, Health and Care Plan. They must hire between 1st August 2020 and 31st January 2021.
This means that employers could receive up to £3,000 for hiring 16 to 18-year-old apprentices from August to January.
Should you require assistance around the Coronavirus Job Retention Scheme and furlough, please contact email@example.com and we will be happy to help.