Chancellor announces three-point strategy to protect and create jobs

‘Our plan has a clear goal: to protect, support and create jobs,’ said the chancellor. 

Chancellor Rishi Sunak has announced a three-point strategy aimed at supporting, protecting, and retaining jobs.

Sunak announced that the furlough scheme, as was planned, will come to an end in October.

However, to try and ensure that businesses do not respond to the end of furlough by letting staff go, Sunak announced the Job Retention Bonus. The scheme means that the government will pay employers £1,000 for every furloughed staff member bought back into work so long as he or she is still employed as of 31 January 2021.

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Of particular concern, said Sunak, was the potential risk of widespread youth unemployment. To prevent this, he announced a £2 billion “kickstart scheme” to create more job placements for young people.

The scheme will subsidise six-month work placements for people aged between 16 and 24 who are on universal credit and seen as at risk of long-term unemployment.

Funding will be available for the six-month job placement and will cover 100% of the national minimum wage for 25 hours a week. Employers will be able to top up this wage.

Speaking to the House of Commons, the chancellor said the scheme should prevent a generation being “left behind” by the economic fallout of the pandemic.

On top of that, a total of £1.6 billion will be invested in increasing employment support schemes, and training and apprenticeships to help young people looking for a job.

This will include companies receiving £2,000 for each new apprentice they hire under the age of 25. This is on top of an existing £1,000 payment the government already provides for new 16- to 18-year-old apprentices and those aged under 25 with an Education, Health and Care Plan.

An additional £111 million will also be provided to triple the number of traineeships in 2020-21.

The chancellor also announced the bringing forward of £8.8 billion of infrastructure spending projects in a bid to create tens of thousands of jobs.

Meanwhile, it is hoped that VAT cuts on food, accommodation and attractions, plus the new Eat Out to Help Out discount scheme, will help support jobs in the hospitality sector.

Speaking to the House, Sunak said: “Our plan has a clear goal: to protect, support and create jobs. It will give businesses the confidence to retain and hire. To create jobs in every part of our country. To give young people a better start. To give people everywhere the opportunity of a fresh start.”