Further information has been published today on how
businesses can claim the government’s Job Retention Bonus,
with millions set to benefit from the £9bn package.
The scheme is designed to continue to support jobs through
the UK’s economic recovery from coronavirus by encouraging
and helping employers to retain as many employees who’ve been
on furlough as possible.
New guidance sets out the information employers who have
furloughed employees need to know in order to claim the bonus
from the 15th February until the 31st
March 2021.
Employers will still be able to claim even if they are
receiving support from the recently announced Job Support
Scheme, which will protect jobs in businesses facing lower
demand over the winter months due to coronavirus.
Chancellor of the Exchequer
said:
“The Job Retention Bonus is an additional boost employers can
receive on top of the extensive support we’ve already put in
place for businesses, including loans, grants and our new Job
Support Scheme.
“I know how hard employers have worked to bring furloughed
staff back, and this bonus, equal to a 20% wage subsidy, will
help ensure they continue to retain them.”
The £1,000 Job Retention Bonus is equal to a 20% wage subsidy
for the employment costs of the average person previously
furloughed, but for those on lower incomes, it’s 40% of wage
costs over the 3-month period to the end of January 2021.
This new guidance has been published ahead of the launch of
the new Job Support Scheme on November 1st. The scheme,
launched by Chancellor as part of
his Winter Economy Plan will run for six months and help keep
employees in sectors facing reduced demand attached to the
workforce.
Through the Job Support Scheme, the government will
contribute towards the wages of employees who are working
fewer than normal hours due to decreased demand. The scheme
will be open to employers across the UK even if they have not
previously used the furlough scheme.
Further guidance on the scheme will be published in due
course.
