9 July 2020

Chancellor Rishi Sunak announced his ‘plan for jobs’ yesterday, 8 July 2020.

He confirmed that the furlough scheme will end in October 2020.

This update covers some of the new initiatives he announced:

  • Job retention bonus.
  • Kickstart scheme.
  • Apprentices.
  • Traineeships.

In addition: Businesses in Scotland who wish to apply for grants to help with the impact of coronavirus must apply by tomorrow,10 July 2020. Find out more.

Job retention bonus

A one-off job retention bonus of £1,000 will be paid to employers for each furloughed employee who is still employed on 31 January 2021 and earning at least £520 a month.

Kickstart scheme

The kickstart scheme will pay employers to create six-month job placements for any 16-24-year-olds who are claiming Universal Credit and at risk of long-term unemployment.

The jobs must be for a minimum of 25 hours a week and paid at least the National Minimum Wage. The government will pay the wages for six months plus an amount for overheads. For a 24-year-old the grant would be about £6,500. Employers will provide training and support to find a permanent job.

Employers can apply to be part of this scheme from next month.


Over the next six months, the government will pay employers £2,000 for each new apprenticeship they create for an individual under the age of 25.

The government will also introduce a brand-new bonus of £1,500 for businesses who take on an apprentice aged 25 and over.

This money is in addition to the existing £1,000 payment the government already provides for new 16-18-year-old apprentices and those aged under 25 with an education, health and care Plan.


Employers in England will be paid £1,000 to take on new trainees. Eligibility for traineeships will be expanded to those with level 3 qualifications and below to ensure that more young people have access to high-quality training.

Find out more about the government’s plans on its website.

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