In his Summer economic update's ‘Plan for Jobs 2020,’ the Chancellor announced new schemes to help young unemployed people, create more apprenticeships and support those who lose their jobs to get back into the labour market quickly. This is part of the ongoing support from the government during the COVID-19 pandemic.
The government is providing additional funding to support people in finding jobs, enable them to gain the necessary skills to get jobs and provide targeted help for young people to get into work. Some of the schemes apply across Great Britain (GB) whilst others apply in England only.
The Kickstart Scheme, a GB-wide scheme, will provide:
- Six-month work placements for the unemployed who are:
- Between the ages of 16 and 24.
- On Universal Credit.
- At risk of long term unemployment.
- 100% government funding at the appropriate National Minimum Wage (NMW) for 25 hours a week,
- plus the associated employer National Insurance contributions
- and employer minimum automatic enrolment pension contributions.
Traineeships for young people in England:
- Employers who provide trainees with work experience will receive £1,000 per trainee.
- It is capped at ten trainees per business.
- Those with Level 3 qualifications (A level) and below will be eligible.
More Apprenticeships:
Employers hiring new apprentices in England between 1st August 2020 to 31st January 2021 will receive:
- £2,000 for each apprentice between the ages of 16 and 24.
- £1,500 for each apprentice aged 25 and over.
These payments will be in addition to the £1,000 payment the government already provides for new apprentices aged 16-18 years old.
Additional support will come in the form of:
- Doubling the number of work coaches in jobcentres across Great Britain.
- New funding for the national careers service in England.
- A new online private sector provided job finding support service.
- Funding to triple the number of sector-based work academy placements in England.
- A Construction Talent Retention Scheme to support the redeployment of workers at risk of redundancy in the construction industry.
Links
Summer Economic Update: At glance
Chancellor of the Exchequer, Rishi Sunak, made his update on Wednesday 8 July 2020. We outline his new measures designed to assist in reviving jobs and the economy following the outbreak of the Coronavirus.
Apprenticeship levy (employers' briefing)
From 6 April 2017, an apprenticeship levy is payable by the largest employers based on payroll costs.
COVID-19: Government support tracker
This tracker covers measures announced by the government to support individuals and businesses, as we get through COVID-19.
COVID-19: Coronavirus Job Retention Scheme
Coronavirus Job Retention Scheme: a cash grant that is designed to allow employers to retain staff who would otherwise be laid off.
COVID-19: Self Employed Income Support Scheme
The deadline for claiming under the first round is 13 July 2020. Claims for the second round of grants at the lower rate may be made in August with a deadline of 19 October 2020.
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