The UK government has announced a new scheme to keep furloughed workers in their jobs when the Coronavirus Job Retention Scheme ends in October.
In his summer statement, Rishi Sunak unveiled the Job Retention Bonus, in which businesses will be paid £1,000 per employee to retain its furloughed staff.
The Chancellor said any employer who brings back a furloughed employee, and continuously employs them through to 31 January 2021, will be paid a one-off £1,000 bonus by the government.
A ‘kickstart’ job creation scheme for young people was also announced, where the government will pay the wages of new young employees for the first six months. Young people aged 16-24, claiming Universal Credit and at risk of long-term unemployment, will be eligible.
An initial £2bn will fund the scheme, with no cap on the number of places available, explained Rishi. For each six-month job placement, the government will cover 100% of the National Minimum Wage for 25 hours a week – and employers will be able to top the wage up.
Apprenticeships will also be supported, with companies receiving a £2,000 bonus for each new apprentice they hire under the age of 25 — companies taking on apprentices aged over 25 will receive £1,500.