As redundancies and job losses sadly continue to rise both in the UK and globally, UK Chancellor Rishi Sunak has announced today the latest UK governmental initiatives that seeks to stimulate the British economy. It is important during your job search to remain aware of any key governmental announcements that are made in case you are able to utilise them to your advantage.
Whilst it is likely to take some time before any impact is measurable it is important during your job search to remain aware of any key governmental announcements that are made in case you are able to utilise them to your advantage ahead of the crowd.
Mr. Sunak outlined that the response to coronavirus from an economic perspective was taking place in three phases. The first phase included implementing social distancing initiatives to spread the halt of coronavirus and the implementation of job retention schemes such as the furlough scheme. The second Phase of the economic response was outlined today as being all about “jobs” which will be in advance of the future Phase 3 entitled “Rebuild”.
In terms of Phase 2 announced today, here are the key headlines you need to know:
If an employer brings someone back to work who was furloughed and they are employed until January 2021, the employer will receive a £1,000 bonus per employee. This takes place once the furlough scheme ends in October 2020.
Aimed at young people between the ages of 18 and 24, the scheme will directly pay employers to hire young people into “additional jobs” with a minimum of 25 hours per week. The government will pay the wages for 6 months with some “overheads”. Employers can apply for the scheme from August with the first “kick-starters” commencing in the Autumn.In addition careers advisors will be taken on by the government to provide more basic level advice for all seeking employment within that age range.
These will be doubled in job centres providing additional support for the long-term unemployed.
From September, homeowners can apply for vouchers to make their homes greener with a value of up to £5,000. For low-income households, the vouchers can be worth up to £10,000 and up to 100% of the value of the work required.
No stamp duty on houses worth up to £500,000 until 31st March 2021. The changes will take effect immediately.
Across these sectors there are more than 2 million people affected with 1.4 million people furloughed. To help stimulate the recovery of these sectors, two new measures were announced. Firstly, VAT was reduced from 20% to 5% for 6 months with effect from next Wednesday. Secondly, throughout August, everyone in the UK will receive a “eat out to help out” discount. Individuals will receive 50% off their bill with a maximum of £10 per head.