Chancellor Announces Next Job Retention Initiative – But Is It Enough For Employers?
During the summer statement yesterday, the Chancellor of the Exchequer announced the next stage to the job retention scheme that has supported millions of businesses through the COVID-19 Pandemic. A scheme which has for many businesses been the lifeboat that they have been able to cling to during these troubled waters.
In an aim to bring as many furloughed workers back to work as possible, the Government has promised a payment of £1,000 made to employers for each worker who returns to work and who remains employed at the end of January 2021. (Subject to the worker being paid £520 per month which is equivalent to the National Insurance lower earnings limit).
There has been much media speculation about a further extension to the furlough scheme, which was expected today, many referring to this as the “furlough flip” where a lower percentage of payment would be made to employers that require the ongoing support of the government to pay the wages of workers. There has been no extension of the furlough scheme announced today.
Although the Chancellor has confirmed that this is not the last intervention, simply the next intervention.
NucleusHR have supported over 85% of their client base through redundancy programs over the previous months, with much of their focus placed on assisting businesses survive the COVID recovery period.
When businesses are doing everything that they can to survive right now, when faced with the what is predicted to be the biggest job recession in living memory, you have to ask, is a £1,000 job retention bonus for employers, albeit welcomed, enough to make a difference?
NucleusHR have been delighted to assist businesses throughout this crisis and will continue to do so.