The Job Retention Bonus

Posted on 15th July 2020 by Streets


Image to represent The Job Retention Bonus

The Chancellor’s Summer Statement was very much focused on his Plan for Jobs.


Within the statement the Chancellor advised that his three-point Plan for Jobs focused on:

  1. Support to find jobs
  2. Job Creation
  3. Job Protection

To achieve this a number of schemes aimed at helping employers were announced. These include:

  • Kickstart Scheme
  • Traineeships
  • Apprenticeships

In addition to this, and the focus of this article, is the Job Retention Bonus.

The Job Retention Bonus is to incentivise employers to keep furloughed employees on after the furlough scheme finishes at the end of October 2020. The announcement confirmed that employers will receive a one-off bonus of £1,000 for each furloughed employee who is still employed on 31 January 2021.

We do not currently have all of the detail on the Job Retention Bonus and it has been confirmed that further detail will be provided by the end of July.

However, we do know that the bonus has been introduced as the Chancellor confirmed the Furlough Scheme must come to an end and wanted to incentivise employers to get as many people back from furlough to their jobs.

In addition, as we understand based on the information currently available, the following also applies:

  • In order to qualify for the bonus furloughed employees must be continuously employed through to the end of January 2021. 
  • There is a requirement for employees to earn above the Lower Earnings Limited (£520 a month) on average between the end of the CJRS and the end of January 2021.
  • The amount of bonus is the same regardless of the actual salary of furloughed employees
  • Unlike the CJRS, this is a bonus for the employers and does not need to be paid to or used to benefit staff.
  • Payments will be made from February 2021

There are a number of outstanding issues on which we require further clarification when more detail is announced at the end of July and we will look to provide a further update of the position then.


No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


Expert insight and news straight
to your inbox

Related Articles


Welcome to our new merged practice Streets Andrew Wright in Wakefield!

We are delighted to announce the establishment of Streets Andrew Wright Chartered Accountants. The announcement follows the merger of the Wakefield practice, Andrew Wright & Co with ourselves.When asked about the merger, Sally Wright, Managing Director, said: “Fellow Director Richard Farndale and I are delighted and excited about the ...


Golf Day Secures Hole in One for Air Ambulance

We hosted our 11th annual charity golf day earlier this month raising a record amount of more than £7,500 for the Air Ambulance. The total amount fundraised will be divided between our three regional charities; East Anglian Air Ambulance, Lincolnshire and Nottinghamshire Air Ambulance and Yorkshire Air Ambulance.The winning ...


Ordering documents from Companies House

Companies House offers interested parties the ability to order certified copies of certificates and documents held on the Companies House register. You can order: a company certificate with certified facts; or a certified copy of a document held


You might also be interested in...