UK government to pay £1,000 bonus for bringing staff back from furlough

The United Kingdom Finance Minister Rishi Sunak on July 8 announced a £1,000 ‘job retention bonus’ for employers that bring workers back from furlough. While explaining the new policy, the Chancellor of the Exchequer said that if an employer brings someone back who was furloughed and continue to employ them between November and January then the government will award £1,000 bonus for each worker. He also confirmed that the new scheme would be wound down by October. 

While speaking at a news conference, Sunak said, “Our message to business is clear: If you stand by your workers, we will stand by you. No one will be left without hope. Where problems emerge, we will confront them. Where support is justified, we will provide it. Where challenges arise, we will overcome them”. 

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According to the new policy, employees must earn at least the lower-earning limit for national insurance - £520 per month - between November and January in order for employers to be eligible for the pay-out. Sunak explained that if the government paid the bonus for every one of the nine million workers who have accessed the job support scheme since its start, the new policy would cost £9 billion to retain people in work. 

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‘Kick start scheme’ 

Further, in a bid to revive the hard-hit economy amid COVID-19 outbreak, the UK Chancellor also announced a new ‘Kick start scheme’ to help get young people into work. The treasury plans to invest £2 billion to support the work placement for young people aged between 16 and 24. Under the ‘Kick start scheme’, Sunak explained that employers will be able to subsidise the wages of people aged 16-24 that are claiming Universal Credit and at ‘risk of long-term unemployment’. 

Additionally, the Finance Minister announced that the government would give companies £2,000 each to encourage them to hire apprentices and £1,500 if they hire apprentices over 25. The series of the announcement comes after the government pledged to triple the scale of traineeships, invest £17 million in sector-based work academy placements, £900 million investment to double the number of work coaches available and also to invest more in the National Careers Service. The government also pledged £1 billion investment in the Department of Work and Pensions to help jobseekers. 

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