Recently, the Chancellor made it official that he would be looking to do certain things in order to help the economy recover from the devastating effects of the unprecedented pandemic. This included the hefty investment in giving young people more skills through training and apprentice positions. The entire goal of the plan is to put the economy in a better position moving forward. Below, we will be going over some of the different things that you should know about the new plan that has been announced.
Things To Know:
1. Youth Jobs
One of the main things that you can point out from the announcement is that the Chancellor is going to be looking to invest heavily into the youth. This is a plan set in place in order to keep the younger generation from being unable to find suitable work. Through the program itself, it is expected to create a lot of jobs for this generation that would otherwise be left behind. This job creation fund will be covering 100% of the minimum wage for each and every placement that is made up to 25 hours.
Another big thing that can be taken away from this is the fact that the government is going to be expected to introduce a new payment in the amount of £2,000 to any employer who looks to hire an employee that is under the age of 25. They are looking to maximise the efforts of hiring the younger generation. Furthermore, any business that hires someone who is over 25 for an apprenticeship will receive £1,500.
3. Bonuses To Businesses
Another thing that this new effort is going to do is to incentivise employers to retain their staff. Because the pandemic has led to a significant downturn in business, it is causing a lot of employers to look to cut costs. Because of this, it has become a very big issue among those who might not be in the most secure positions as it is. However, this new funding round is expected to incentivise all employers for retaining their staff. This incentive will give employers a job retention bonus in the amount of £1,000. Therefore, it is expected to limit the number of people who end up continuing to lose their jobs due to the downturn in the economy.
4. VAT Reductions
Another portion of the plan is meant to significantly reduce the total amount of VAT paid in order to encourage consumer spending to try to reboot the economy. The VAT for the hospitality sector, in particular, has been reduced from 20% to 5% which is meant to help one of the most impacted sectors to recover from the global effects of the virus.
Overall, this epidemic has been one for the record books. It is something that really hit the entire globe and it has crushed many local economies. This recovery effort really focuses on trying to get those most impacted by the downturn by providing both economic relief and incentives to ensure that they are able to find jobs and that their employees continue keeping them on the books.