Furlough Scheme update - Mini Budget 2020

Rishi Sunak today announced in his economic update that the Coronavirus Job Retention Scheme (CJRS) will continue to wind down gradually until the end of October. However, the Government will now pay a jobs retention bonus to businesses who bring back furloughed staff and retain them until the end of January 2021.

In his announcement, which has been labelled the ‘mini-budget’, he stated that businesses who bring back furloughed staff will be paid £1,000 per member of staff. If every furloughed employee is brought back to work, this would cost the Treasury more than £9bn but help to protect the economy. Workers must have been continuously employed and earn an average of more than £520 per month in November, December and January.

In further plans to help keep the job market stable Sunak also:

• Launched the Kickstart Scheme in which employers will be able to offer a six-month work placement, for young people aged between 16-24, who are claiming Universal Credit and at risk of long-term unemployment with the Treasury will covering 100% of the National Minimum Wage for each young employee for up to 25 hours a week with firms able to top up the worker’s pay

• Announced £111m of investment to triple the number of traineeships with businesses offered a £1,000 per trainee payment (capped at 10 jobs per firm)

• Set out plans for the next six months that the Government will pay businesses up to £2,000 for every new apprentice under 25 and £1,500 for every new apprentice above 25 hired

If you would like some HR advice around furlough leave or are considering making any redundancies, please contact me Kerry Whitfield on 01865 292261 or Kerry.whitfield@shawgibbs.com.