How the March 2021 Budget affects employers
BUDGET 3 MARCH 2021
Chancellor Rishi Sunak has announced a three-step plan in the Budget which intends to “protect jobs and livelihood” as the pandemic continues. A summary of the main points for employers is as follows:
Furlough extension
The Coronavirus Job Retention Scheme has been extended until the end of September 2021. Although furloughed workers will continue to receive 80% of their salary for hours not worked, employer contributions will rise to 10% in July and 20% in August and September.
Support for the self-employed
Support for the self-employed will be expanded to include over 600,000 more self-employed people who were previously not eligible for support.
National Living Wage
The National Living Wage will be increased from April 2021 from £8.72 to £8.91 per hour.
Incentive payments for apprentices
The Chancellor has announced a doubling of incentive payments for businesses to hire new apprentices to £3,000 for each new apprentice hired, regardless of age. The number of traineeships is also expected to triple due to an investment of £1.26 million by the government.
Restart Scheme
The Restart Scheme will be available from April 2021. The scheme provides a one-off cash grant of up to
£18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England. In addition, non-essential businesses will be eligible for Restart grants of up to £6,000 per premises.
Statutory Sick Pay:
Small and medium sized employers will continue to be able to reclaim up to two weeks of eligible statutory sick pay costs per employee.
Other features of the Budget:
- A new Recovery Loan Scheme proving loans of £25,000 to £10 million to help businesses through the next stage of the recovery;
- A six month extension of the £20 per week Universal Credit uplift which will be in the form of a one off £500 payment;
- A new Help to Grow scheme which will provide training and technology advice to 130,000 small and medium size businesses;
- An extension of the Film and TV Production Restart Scheme with £300 million to support cultural organisation