Jobs retention bonus: How much will employers receive to re-employ staff?
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Rishi Sunak has warned that “hardship lies ahead”, but insisted that no-one will be left “without hope” as he announced an emergency package of measures to cope with the economic impact of coronavirus. The Chancellor, in what amounts to a mini-budget, told MPs that the Government will do “all we can” to keep people in work.
Addressing MPs revealing his summer budget, Mr Sunak said his “plan for jobs” would help protect livelihoods after the economy contracted by 25% in just two months.
He said: “We have taken decisive action to protect our economy. But people are anxious about losing their jobs, about unemployment rising. We’re not just going to accept this.
“People need to know we will do all we can to give everyone the opportunity of good and secure work.
“People need to know that although hardship lies ahead, no-one will be left without hope.”
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How much will employers receive to re-employ staff in jobs retention bonus?
Mr Sunak announced a “jobs retention bonus” to encourage employers to keep on staff after furlough ends.
This will be £1,000 per employee.
The Chancellor’s statement comes after warnings from the Organisation for Economic Co-operation and Development (OECD) that the UK’s unemployment rate could soar to 14.8 percent, with job losses comparable to the 1930s.
Mr Sunak said there would be a new jobs retention bonus to incentivise employers to bring back staff from furlough.
Firms will receive a £1,000 bonus for each staff member they return and continuously employ through to January.
“If employers bring back all nine million people who have been on furlough, this would be a £9 billion policy to retain people in work,” he said.
“Our message to business is clear: if you stand by your workers, we will stand by you.”
The Treasury has set aside up to £9.4 billion to pay for the job retention bonus.
Its “plan for jobs” document says the figure represents a maximum possible cost if it is paid to all 9.4 million furloughed jobs claimed for as of July 5 and acknowledges the true cost “will likely be lower”.
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