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Government introduces Job Retention Scheme

Wednesday 08 July 2020

The Chancellor, Rishi Sunak, launched today, 8 July, a new scheme to encourage businesses to keep furloughed workers providing a £1,000 one-off payment to UK employers for every employee they bring back from furlough, who remains in employment until the end of January 2021.

Over 9 million jobs have been furloughed during the Coronavirus pandemic, and the Government’s promise to support jobs in various ways includes a ‘Kickstart Scheme’.

Eligible employees who earn above the lower earnings limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme (31 October 2020) and the end of January and must be employed in meaningful work. Employers can expect to receive the bonus payments from February 20201 with the Government announcing further details by the end of July 2020.

Plan for jobs

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It is important that people who have been furloughed are supported back to work. It is beneficial for everyone, including the individual, to prevent skills from fading and to maintain strong employment relationships. Therefore, the government is introducing a new Job Retention Bonus to reward and incentivise employers who keep on their furloughed employees.

Rishi Sunak, Chancellor of the Exchequer