In the Spring Budget, schemes were put into place to support employers, help people remain in employment and create new jobs. Two of the schemes are summarised below for employers.
The Coronavirus Job Retention Scheme (JRS)
The current JRS allows an employer to place an employee on furlough and apply for a grant to cover wage costs for the time an employee is on furlough.
In Budget 2021, the Chancellor has further extended the scheme to 30 September 2021.
The level of grants available to employers under the scheme will stay the same until 30 June 2021.
From 1 July 2021, the level of grant will be reduced, and employers will be asked to contribute towards the cost of furloughed employees' wages. To be eligible for the grant, an employer must continue to pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.
Apprenticeships and traineeships
1. High-quality traineeships for young people
The government will provide an additional £126 million in England for high-quality work placements and training for 16–24-year-olds in the 2021/22 academic year. Employers who provide trainees with work experience will continue to be funded at a rate of £1,000 per trainee.
2. Payments for employers who hire new apprentices
The government will extend and increase the payments made to employers in England who hire new apprentices. Employers who hire a new apprentice between 1 April 2021 and
30 September 2021 will receive £3,000 per new hire, compared with £1,500 per new apprentice hire (or £2,000 for those aged 24 and under) under the previous scheme.
This is in addition to the existing £1,000 payment the government provides for all new 16–18-year-old apprentices and those aged under 25 with an Education, Health and Care Plan, where that applies.
3. Supporting apprenticeships across different employers
The government will introduce a £7 million fund from July 2021 to help employers in England set up and expand portable apprenticeships. This will enable people who need to work across multiple projects with different employers to benefit from the high-quality long-term training that an apprenticeship provides.
If you are an employer and need advice about these schemes, please do get in touch with us.
You can call 01623 490 120 or email