08 July, 2020
Rishi Sunak has today addressed the House of Commons with his plan to kickstart the UK economy again and protect the jobs of workers.
The measures proposed by Rishi Sunak include the following:
The Chancellor announced that the government will pay companies £1,000 for each furloughed employee they bring back to work and who they continue to employ until January 2021. For businesses to be eligible for the bonus, each employee must be paid at least £520 on average from 1 November 2020 to 31 January 2021. It is hoped that this move will reward and incentivise businesses who successfully bring furloughed staff back to work following the expiry of the scheme in October 2020.
The Chancellor also confirmed the launch of a new £2 billion 'kickstart scheme' to create more jobs for young people with the aim of preventing an entire generation being "left behind". Under the scheme the government will pay the wages of 16 - 24-year-olds starting new jobs that provide training and support. The government will cover 100% of the minimum wage for a maximum of 25 hours a week, for a period of 6 months plus an amount to cover the cost of overheads. Employers can apply to be part of the scheme from next month with the first 'kickstarters' expected to be in their new jobs this autumn. A move which the Chancellor expects will create hundreds of thousands of jobs.
The Chancellor has also made a pledge to provide 30,000 new traineeships for young people by offering businesses £1,000 for each new trainee place they offer. He has also announced that the government will pay businesses a payment of £2,000 to hire young apprentices and will introduce a bonus of £1,500 for those businesses who hire apprentices aged 25 and over.
Mr Sunak told the cabinet meeting that he wanted to protect as many jobs as possible and support the further opening-up of the economy.
Other measures announced by the Chancellor include:
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