Government Economic Update – Plan for jobs

Summary below from the LGA, all updates on A plan for jobs on gov.uk

In the Government’s Summer Economic Update, the Chancellor of the Exchequer Rishi Sunak confirmed that the Coronavirus Jobs Retention Scheme would wind down flexibly and gradually, ending in October 2020. He also announced a range of measures aimed at supporting, protecting and creating jobs. Of course, we are now analysing the details and will communicate in more detail any implications for councils in the coming days.

Jobs Retention Bonus – The Government will introduce a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021. Employees must earn above the Lower Earnings Limit (£520 a month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021. Payments will be made from February 2021. Further detail about the scheme will be announced by the end of July.

Kickstart Scheme – A new ‘Kickstart Scheme’ will be introduced – a £2 billion fund to create six-month work placements aimed at those aged between 16 and 24 who are on Universal Credit and are deemed to be at risk of long-term unemployment. Funding available for each job will cover 100 per cent of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.

New funding for National Careers Service – An additional £32 million funding will be provided over the next two years for the National Careers Service so that 269,000 more people in England can receive personalised advice on training and work.

High quality traineeships for young people – An additional £111 million will be provided this year for traineeships in England, to fund high quality work placements and training for 16-24-year olds. The Government will fund employers who provide trainees with work experience, at a rate of £1,000 per trainee. The Government will improve provision and expand eligibility for traineeships to those with Level 3 qualifications and below.

Payments for employers who hire new apprentices – The Government will introduce a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1 August 2020 to 31 January 2021. These payments will be in addition to the existing £1,000 payment the Government already provides for new 16-18-year-old apprentices, and those aged under 25 with an Education, Health and Care Plan – where that applies.

High value courses for school and college leavers – £101 million will be provided for the 2020-21 academic year to give all 18-19-year olds in England the opportunity to study targeted high value Level 2 and 3 courses when there are not employment opportunities available to them.

Expanded Youth Offer – The Government will expand and increase the intensive support offered by the Department for Work and Pensions (DWP) in Great Britain to young jobseekers, to include all those aged 18-24 in the Intensive Work Search Group in Universal Credit. 9 Information as at 2.30pm 17th July Nigel.carruthers@local.gov.uk

Enhanced work search support – The Government will provide £895 million to enhance work search support by doubling the number of work coaches in Jobcentre Plus before the end of the financial year across Great Britain.

Expansion of the Work and Health Programme – Up to £95 million will be provided this year to expand the scope of the Work and Health Programme in Great Britain to introduce additional voluntary support in the autumn for those on benefits that have been unemployed for more than three months. This expansion will have no impact on the existing provision for those with illnesses or disabilities in England and Wales.

Job finding support service – £40 million will be provided to fund private sector capacity to introduce a job finding support service in Great Britain in the autumn. This online, one-to-one service is aimed at helping those who have been unemployed for less than three months increase their chances of finding employment.

Flexible Support Fund – The Government will increase the funding for the Flexible Support Fund by £150 million in Great Britain, including to increase the capacity of the Rapid Response Service. It will also provide local support to claimants by removing barriers to work such as travel expenses for attending interviews.

New funding for sector-based work academies – The Government will provide an additional £17 million this year to triple the number of sector-based work academy placements in England in order to provide vocational training and guaranteed interviews for more people, helping them gain the skills needed for the jobs available in their local area.

Eat Out to Help Out – The Chancellor announced the introduction of the ‘Eat Out to Help Out scheme’ to encourage people to return to eating out. This will entitle every diner to a 50 per cent discount of up to £10 per head on their meal, at any participating restaurant, café, pub or other eligible food service establishment. The discount can be used unlimited times and will be valid Monday to Wednesday on any eat-in meal (including on non-alcoholic drinks) for the entire month of August 2020 across the UK. Participating establishments will be fully reimbursed for the 50 per cent discount.

Temporary VAT cut for food and non-alcoholic drinks – From 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector, the reduced (5 per cent) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days.

Temporary VAT cut for accommodation and attractions – From 15 July 2020 to 12 January 2021, to support businesses and jobs, the reduced (5 per cent) rate of VAT will apply to supplies of accommodation and admission to attractions across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days.

Temporary Stamp Duty Land Tax (SDLT) cut – The Government will temporarily increase the Nil Rate Band of Residential SDLT, in England and Northern Ireland, from £125,000 to £500,000. This will apply from 8 July 2020 until 31 March 2021 and cut the tax due for everyone who would have paid SDLT. 10 Information as at 2.30pm 17th July Nigel.carruthers@local.gov.uk

Green Homes Grant – A £2 billion Green Homes Grant will be introduced, providing at least £2 for every £1 homeowners and landlords spend to make their homes more energy efficient, up to £5,000 per household. For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household. In total this could support over 100,000 green jobs and help strengthen a supply chain that the Government hopes will help meet their target of net zero greenhouse gas emissions by 2050. The scheme aims to upgrade over 600,000 homes across England to save money on their energy bills.

Public Sector Decarbonisation Scheme – The Clean Growth Strategy set out the Government’s ambition to halve greenhouse gas emissions from the public sector by 2032. To help achieve this and support economic recovery, the Government will invest £1 billion over the next year in a Public Sector Decarbonisation Scheme that will offer grants to public sector bodies, including schools and hospitals, to fund both energy efficiency and low carbon heat upgrades.

Social Housing Decarbonisation Fund – The Government will establish a new Social Housing Decarbonisation Fund to help social landlords improve the least energy-efficient social rented homes, starting with a £50 million demonstrator project in 2020-21 to decarbonise social housing. This is intended to lower annual energy bills for low income households.

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