Rishi Sunak included an exciting and encouraging initiative for businesses and young people in his Summer Statement. The Chancellor of the Exchequer announced an exciting “brand new bonus” for businesses hiring employees over the next six-month period. With a hope to kickstart the economy and bring life back into businesses, as well as supporting young people and their prospects, the new bonus will make hiring apprentices even more appealing.
From August to January any firm who hires an apprentice aged 16 to 24 will receive a £2,000 bonus and any who hires an apprentice over 25 will receive £1,500. Apprenticeships are one of the most effective ways of getting people into work and ensuring they stay in the position or career are they have chosen. In his own words Sunak explained “Ninety one per cent stay in work or go on to further training” when talking about apprenticeships, which supports his commitment to further funding and support.
Further to his initial statement the Treasury has also published its “Plan for Jobs” Document which explains these new payments will be in addition to the existing incentives and not a replacement. This means employers could receive support of as much to £3,000 for hiring a 16-18 year old apprentice between August and January.
Sunak Launches £2bn Kickstart Scheme for Young Workers
Sunak’s speech also saw the announcement of a £2bn kickstart scheme which will pay the wages of people aged 16 to 24 who claim universal credit and take six-month work placements. This scheme will help people back into work without impacting negatively on their financial situation.
Further to this another investment of £111m was confirmed as investment to triple the scale of proven traineeships in 2020 and 2021. This scheme will be expanded to include more applicants, such as those with Level3 qualifications and there will be funding available for up to 36,700 more traineeships going forward.
For school leavers and those at college, Sunak has confirmed an extra £101 million for leavers to return to their studies for a further year, ensuring they get the full level of education they deserve.
Job Retention Bonus Open to All Employers
Sunak’s final encouraging commitment for the working population is the job retention bonus on offer to all employers. Employers who bring back workers from furlough and continue to employ them until January could be eligible for an additional bonus. Employees must be paid at least £520 a month to qualify for the scheme which pays £1,000 per employee kept on.
These are encouraging signs to lift our economy and give young people as well as those looking to find a new trade or skills area the chance to do it. Employers have access to a range of financial schemes to support them in bringing in new and enthusiastic employees.
To find out more about apprentices and apprenticeships or hiring a trainee get in touch.