Mini Budget 2020: Rishi Sunak confirms £1,000 bonus for every firm who hires an 18-24 year-old trainee
RISHI Sunak confirmed in his budget today every firm who hires an 18-24 year old trainee will get a £1,000 bonus.
In the new financial package to relaunch the economy after the coronavirus shutdown, the Chancellor is helping young people get into the workforce.
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Firms who take on trainees will be given extra cash[/caption]
The package – revealed by The Sun last week – is aimed at helping one of the age groups hardest hit by the lockdown which forced most of British industry into hibernation.
The Chancellor said: “Traineeships are a proven scheme to get young people ready for work.
“We know they work, so for the first time ever we’ll pay employers £1,000 to take on trainees, with triple the number of places.
“To support 18-19-year olds leaving school or college to find work in high-demand sectors like engineering, construction and social care, we’ll provide £100m to create more places on Level 2 and Level 3 courses.”
He pledged £111million to the scheme which will incentivise firms to take on and train young workers struggling to find a job.
One in three workers between 18-24 have been earning less during the coronavirus lockdown and are the age group most likely to see long term damage to their earnings.
The traineeships can last from six weeks to six months and new starts will be able to take advantage of extra support in maths, English and CV writing and guidance on what to expect in the workplace.
The Chancellor announced today:
- A stamp duty holiday for homes up to £500,000 to get the housing market moving
- Vouchers worth up to £5000 each for home-owners to spend on making their places more energy efficient
- A ‘kickstart’ jobs placement programme where the Government will fund 25 hours a week to an employer to take on a young person for at least six months
- A huge boost in apprenticeships – and a £1000 in extra cash for firms who take on trainees
- Employers will get a £1,000 bonus per worker they re-employ from furlough in a £9billion boost for firms
- A massive cut to VAT will help out the hospitality sector – and allow Brits to dine out half price Monday to Wednesday
The new initiative aims to triple the number of trainees taken on by employers this year.
According to the Treasury, young workers who taken on traineeships wind up in full-time jobs or further study within 12 months.
The massive cut to VAT announced by the Chancellor will allow Brits to eat out at half price, for up to £10 discount per head from Monday-Wednesday in August.
But it will also help protect jobs – primarily young and low earners.
Around 130,000 businesses are eligible for the scheme dubbed “Eat Out to Help Out” and is designed to support 1.8 million jobs which are disproportionately young, female and part-time workers.
The entire package was part of a three-stage coronavirus economic recovery programme.
The first stage – laid out at the start of lockdown – protected jobs and businesses from going under as the country closed up shop.
This next stage announced today aims to create a bridge to ensure furloughed workers aren’t laid off across the country and people who missed out on opportunities were able to find them.
Boris Johnson’s promise to “level up” Britain set to be announced in the Autumn budget will form the final stage to help “rebuild” the nation.
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