Key points on the Government’s ‘Plan for Jobs’ released on Wednesday 8th July

Published 8 July 2020

We outline the highlights of the government’s plan for jobs – as yet there is only limited guidance available on the schemes and the detail will be released by HMRC in due course.

EMPLOYMENT

• Job Retention Bonus – There will be a one-off payment of £1,000 from Feb 21 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021. Employees must earn above £520 per month on average between the end of the furlough scheme and the end of January 2021. We are awaiting further detail about the scheme to confirm any restrictions that may prevent employers from qualifying.
• Kickstart Scheme – Employers are able to provide fully funded (based on the National Minimum Wage) 6-month work placements aimed at those aged 16-24 who are on Universal Credit and are deemed to be at risk of long-term unemployment.
• Apprentice Scheme – There will be a new payment of £2,000 to employers in England for each new apprentice aged under 25 that they hire between 1st August 2020 and 31st January 2021, and a £1,500 payment for each new apprentice they hire aged 25 and over. 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.

SECTOR SPECIFIC

• Eat Out to Help Out scheme – This entitles every diner to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café, pub or other eligible food service establishment. The discount can be used unlimited times and will be valid Monday to Wednesday on any eat-in meal (including on non-alcoholic drinks) for the entire month of August 2020 across the UK. Participating establishments will be fully reimbursed for the 50% discount but they will need to register to join the scheme.
• Temporary VAT cut – From 15 July 2020 to 12 January 2021, the 5% rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK, as well as accommodation in hotels, B&Bs, campsites and caravan sites, and attractions like cinemas, theme parks and zoos.
• Temporary Stamp Duty Land Tax (SDLT) cut – The nil rate band for residential SDLR will be temporarily (from 8 July 2020 to 31 March 2021) increased, in England and Northern Ireland, from £125,000 to £500,000.
• Green Homes Grant – Homeowners and landlords will receive a government contribution of at least £2 for every £1 of spending on making their homes more energy efficient, up to a maximum of £5,000 per household. For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household.
• Cultural Recovery Fund – The government has committed £1.57 billion to support thousands of arts and cultural organisations. Organisations including museums, galleries, theatres, independent cinemas, heritage sites and music venues will be able to apply for emergency grants and loans.