Today the government announced a new range of measures, aimed at kick-starting the economy. Below is a summary of some of the latest information released by the Government:
Jobs and Training
Job Retention Bonus Scheme
The furlough scheme is slowly being wound down, and is due to end completely at the end of October 2019.
In order to incentivise employers to retain their furloughed employees, a one-off payment of £1000 will be available for every furloughed employee who remains continuously employed until 31st January 2021.
To be eligible for the Bonus, the employee must earn above the Lower Earnings Limit of £520 per month on average between the end of the CJRS scheme (1st November 2020) and 31st January 2021.
The bonus is aimed to be paid out from February 2021
Further details around this scheme will be announced by the end of July
Employers will be able to offer six-month work placements, paid for by the Government, for people aged between 16-24, who are claiming Universal Credit and are at risk of long-term unemployment.
The government will cover 100% of the national minimum wage, up to 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contribution.
Employers can top up this wage if they wish
High Quality Traineeships for Young People
The government will fund employers who provide trainees aged 16-24 with work experience, at a rate of £1000 per trainee.
From 1st August 2020 to 31st January 2021, employers will be paid £2000 for each new apprentice they hire under the age of 25.
For apprentices over the age of 25, the government will pay businesses £1500.
These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18 year-old apprentices, and those aged under 25 with an Education, Health and Care Plan – where that applies.
Stamp Duty Reduction
The Chancellor announced an emergency stamp duty holiday to help revive the property market. Homebuyers will be temporarily exempt from paying the tax for the first £500,000 of any property price.
This comes into effect immediately and will remain in place until 31st March 2021.
Post 31st March 2021, the exemption for stamp duty will drop back down to £125,000.
Green Homes Grant
The Government will pay at least two-thirds of the cost of home improvements, which result in the homes becoming more energy efficient, up to £5,000.
Energy-saving measures included under the scheme have yet to be formally announced, but it is expected that homeowners will be able to use the money on loft, wall and floor insulation, eco-friendly boilers, heat pumps, double or triple-glazed windows, low-energy lighting and energy-efficient doors
This scheme is open to homeowners and landlords, and is limited to one claim per household.
For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household. The parameter for low income has yet to be defined.
The Green Homes Grant Scheme is expected to launch in September of this year.
Once the scheme is open, people will be able to apply online to receive Government funding for improved eco-friendly measures to be implemented in their homes.
The application will also provide details of accredited suppliers in the local area.
Once a quote for home improvement work is provided, the voucher will then be issued by the Government.
Encouragement for Hospitality
Temporary Reduction in VAT
With the intention of supporting jobs and businesses in the hospitality sector, from 15th July 2020 to 12th January 2021:
the VAT rate for food and non-alcoholic drinks will be reduced to 5%.
The VAT rate in relation to supply of accommodation, and admission to attractions will be reduced to 5%
Pubs, restaurants, bars, cafes, hotels and similar premises across the UK will be eligible to apply the reduced rate of VAT.
Further guidance is due to be published in the coming days.
Eat Out to Help Out
This entitles every diner to a 50% discount (up to a maximum on £10 per head) on their meal, at any participating restaurant, pub, café, or other eligible food service establishment.
This discount is valid on eat-in meals (including non-alcoholic drinks), Monday to Wednesday and can be used an unlimited number of times throughout the entire month of August, across the UK.
Participating establishments will be fully reimbursed for the 50% discount.
If you require further information on any of the above schemes please get in touch with us.