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:
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.
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
(Partner/Head of Employment)
For further advice of any of the above changes or any employment related matters, please contact Claire Cole on 01905 726600 or email Claire.firstname.lastname@example.org
The contents of this article are for purposes of general awareness only. They do not purport to constitute legal or professional advice. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.