Employer Return-to-Work Furlough Bonus
During the Coronavirus Economic update, it was announced that employers who bring back furloughed staff and keep them on the payroll until January next year will get a bonus of £1,000 per employee.
The bonus was introduced to ‘serve as a significant incentive’ to preserve jobs and retain employees during the pandemic.
The aim of the scheme is to restore employment opportunities for as many people as possible. The government considered that the longer people are on furlough, the more likely it would be for them to have to refresh their skills and training. This could make it more difficult to find new opportunities and result in lengthy employment gaps.
This announcement formed part of a wider plan to help encourage growth in the post-lockdown economy which included tax changes, an increase in the stamp duty threshold and policies to encourage companies to hire younger works where the government pledged to give firms £2,000 each to hire apprentices and £1,500 to hire apprentices over the age of 25. A VAT scheme has also been announced which will cut 50% on food, accommodation and attractions from 20% to 5%. An Eat Out to Help Out discount has also been introduced where meals eaten at any participating business from Monday to Wednesday will be 50% off in August, up to a maximum discount of £10 per heard for everyone. These changes will hopefully help to induce and encourage the public to work, eat and spend and boost the economy.
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