The Chancellor Rishi Sunak has delivered his summer economic plan to help the UK economy recover from the impact of COVID-19. Below are the key points:
- A one-off Job Retention Bonus of £1,000 payment to employers for every furloughed employee retained to the end of January 2021. This applies to workers earning over £520 per month. Employers will be able to claim the bonus from February 2021 once accurate RTI data to 31 January has been received. More information about this scheme will be available at the end of July and full guidance will be published in the Autumn.
- Six month VAT cut from 20% to 5% from 13th July to 12 January 2021 for food (including hot takeaway food) and non-alcoholic drinks in restaurants, pubs and cafes. The VAT cut also applies to hotels and B&Bs, as well as admission to attractions such as theme parks and cinemas.
- A “Eat out to Help out” scheme will offer 50% discount for every diner in participating restaurants, pubs and cafes, up to £10 per head from Monday to Wednesday throughout August – for food and non-alcoholic drinks. The restaurant/pub owner can claim the discount in full from the Government via an online form
- The threshold for stamp duty on residential property in England and Northern Ireland will rise from £125,000 to £500,000 between 8th July and 31st March 2021
- There will be a £5,000 grant made available per household for projects to make homes more energy efficient in England – for low income households the grant will rise £10,000
- A “Kickstart Scheme” – a £2bn fund to pay for six-month work placements for 16-24 year olds on Universal Credit. Payments cover the national minimum wage fr 25 hours per week, plus NICs and pension contributions
- £1,000 grant per trainee that employers take on aged 16-24; and a £2,000 grant per apprentice that employers hire aged under 25 years old, £1,500 for those over 25 – for six months starting 1st August 2020.