SUPPORTING
JOBS


Job Retention Bonus

The Job Retention Scheme has supported over one million employers to protect over nine million jobs. The government has confirmed that this scheme will finish at the end of October and further details of the scheme
are provided later in this summary.

The Chancellor has announced that a new Job Retention Bonus will be available to reward and incentivise employers who retain their previously furloughed employees. The government will introduce a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021. However,
employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021. Payments will be made from February 2021. Further details about this scheme will be announced by the end of July.

The Kickstart Scheme

One of the main announcements in the Chancellor’s speech related to the introduction of a new Kickstart Scheme to fund the direct
creation of high quality jobs for young people at the highest risk of long-term unemployment.

This will be a £2 billion fund to create hundreds of thousands of high quality six-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.
Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week plus the associated employer National Insurance Contributions and employer minimum automatic
enrolment contributions.

Comment
The aim of the scheme is to give young people the chance to build their confidence and skills in the workplace and then to gain
experience that will improve their chances of going on to find long-term, sustainable work.

The Chancellor stated in his speech that the funding will be conditional on the business proving these are additional jobs.

More changes to support jobs

To address the ongoing challenges that the economy faces, the government has a large-scale plan to support people in finding jobs,
enable them to gain the skills they need to get jobs and provide targeted help for young people to get into work.
In addition, the government intends to support those who are out of work for a longer period with a new large-scale employment support offer. Further details will be announced shortly.

The announcements include:

New funding for National Careers Service - an additional £32 million funding over the next two years for the National Careers Service for personalised advice on training and work.

High quality traineeships for young people - an additional £111 million this year for traineeships in England to fund high quality work placements and training for 16-24 year olds with a view to tripling participation in traineeships. The government will pay employers who provide trainees with work experience £1,000 per trainee.

Payments for employers who hire new apprentices - a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1 August 2020 to 31 January 2021.

Courses for school and college leavers - £101 million for the 2020/21 academic year to give all 18-19 year olds in England the opportunity to study targeted high value Level 2 and 3 courses when there are not employment opportunities available to them.

Expanded Youth Offer - expand and increase the intensive support offered by the DWP in Great Britain to young jobseekers to include all those aged 18-24 in the Intensive Work Search group in Universal Credit.

Enhanced work search support - £895 million to enhance work search support by doubling the number of work coaches in Jobcentre Plus before the end of the financial year across Great Britain.

Expansion of the Work and Health Programme - up to £95 million this year to expand the scope of the Work and Health Programme in Great Britain to introduce additional voluntary support in the autumn for those on benefits that have been unemployed for more than three months.

Job finding support service - £40 million to fund private sector capacity to introduce a job finding support service in Great Britain in the autumn. This online, one-to-one service will help those who have been unemployed for less than three months increase their chances of finding employment.

Flexible Support Fund - increased funding for the Flexible Support Fund of £150 million in Great Britain, including to increase the capacity of the Rapid Response Service, which will also provide local support to claimants by removing barriers to work such as travel expenses for attending interviews.

New funding for sector - based work academies - an additional £17 million this year to triple the number of sector-based work academy placements in England in order to provide vocational training and guaranteed interviews for more people.