Building Legacies Briefing
Government’s New £9 Billion Job Retention Bonus Package
- The Job Retention Bonus is set to support millions of employers who have retained furloughed workers
- The bonus will work alongside the newly announced Job Support Scheme and could be worth more than 60% of average wages of workers who have been furloughed – and are kept on until the start of February 2021
- Businesses can claim for the Bonus from 15th February 2021 until the end of March 2021
The scheme is designed to continue to support jobs through the UK’s economic recovery from Coronavirus, by encouraging and helping employers to retain as many employees who’ve been on furlough as possible.
New guidance sets out the information which employers who have furloughed employees need to know in order to claim the bonus from 15 February until 31 March 2021.
Employers will still be able to claim even if they are receiving support from the recently announced Job Support Scheme, which will protect jobs in businesses facing lower demand over the winter months due to coronavirus.
The £1,000 Job Retention Bonus is equal to a 20% wage subsidy for the employment costs of the average person previously furloughed, but for those on lower incomes, it’s 40% of wage costs over the three-month period to the end of January 2021.
Through the Job Support Scheme, the Government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand.
The scheme will be open to employers across the UK even if they have not previously used the furlough scheme.
Further guidance on the scheme will be published ‘in due course’. Meantime, you can check your eligibility and find out how to apply.
The new Job Support Scheme is due for launch on 1st November – we will of course provide updates as the situation develops.