COVID 19, H&S Updates, HR Updates

Kick Start the Economy Government Announcement

Recovery from the impact of the pandemic will take time and the latest announcement from the Government is aimed at helping aid business recovery and the overall economy. The Chancellor has announced further incentives linked to the Job Retention Scheme in addition to sector-specific support to get the Economy “kick-started”

On the 8th of July 2020, the government made an announcement concerning its support to businesses, employees and the alike to help reboot the economy following the Coronavirus Lockdown. This is part of its package of Coronavirus support measures.

During Rishi Sunak’s statement, he provided details on several schemes the government would be introducing over the coming months. These included help within the hospitality sector, apprentices and the general workforce as a whole. Below are further details on each scheme and what it may mean for employers.

Job Retention Bonus

The Job retention bonus includes providing employers with a bonus of £1000 per furloughed employee/worker that is still employed in January 2021, subject to certain criteria, one of those criteria being they must be paid a minimum of £520 per month for November, December and January.

Kick Start Scheme

A new Scheme specifically geared towards 16 to 24-year-olds has also been implemented. The scheme is to pay for the salary of those employees employed through this scheme for 6 months along with costs towards overheads.  The conditions of the scheme are that the new recruits:

  •  must work 25 hours or more a week,
  • earn at least the National Minimum wage,
  • Be given good quality jobs
  • with support and training to find permanent roles

The scheme will start next month with the first employees as part of the scheme in the Autumn.  Visit the Gov.uk website for further information.

Additional Support for Young People

There is also additional support for young people:

  • £1000 to employers who take on young people on traineeships, with triple the number of places
  • £100 million on places for Level 2 and Level 3 courses
  • Funding for career advisors to advise an additional quarter of a million people.
  • Pay employers to provide apprenticeships for 6 months £2,000 per apprentice
  • The new bonus of £1500 to businesses who hire apprentices aged 25 years and over

Cut on VAT in the Hospitality and Tourism Sector

VAT will be cut from 20% to 5% from Wednesday 16 July 2020 until January 12th 2021. The cuts on VAT will apply to:

  • Eat-in or hot takeaway food from restaurants, cafes and pubs
  • Accommodation in hotels, B&Bs, campsites and caravan sites
  • Attractions like cinemas, theme parks and zoos

Eat Out to Help Out Scheme

And finally, The Chancellor further announced a eat out to help out scheme directed specifically at the Hospitality Sectors where businesses are able to register to be part of the scheme and can then charge half of the price for a meal up to a maximum of £10 per person for food and non-alcoholic drinks.

The scheme will be applicable Mondays, Tuesdays and Wednesdays from 03 August 2020 until 31 August 2020. Registration will be open from Monday 13 July 2020.

Park City’s team of experienced and highly qualified HR professionals are available to advise and support you, please call 01206 752100 and review our blog and COVID-19 Resources for Business pages for further details.

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