The Plan for Jobs – what does it mean for the Hospitality sector

13 July 2020

The Government has now announced the Coronavirus Job Retention Bonus (CJRB). 

This will provide employers with a bonus of £1,000 for each employee who returns to work from furlough and who is paid at least £520 per month on average between November and end January 2021. The bonus will be paid from February 2021.

In addition, there are incentives to create new jobs including:

  • Kickstart scheme – for 16-24 year olds who are on Universal Credit where employers create new, quality 6-month work placements, which must genuinely be in addition to existing jobs. The Government will fund 100% of the National Minimum Wage for 25 hours of work per week, plus the associated employer NIC and minimum auto enrolment contributions.
  • Traineeships additional support to triple the number of places available under the traineeship scheme, with the Government funding employers who provide trainees with work experience at a rate of £1,000 per trainee.
  • New funding for sector-based work academies – the Government will provide an additional £17 million this year to triple the number of sector-based work academy placements in England in order to provide vocational training and guaranteed interviews for more people, helping them gain the skills needed for the jobs available in their local area.
  • Apprenticeships – payments of £2,000 to employers for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice aged 25 and over, to run from 1 August 2020 to 31 January 2021.
  • Green Homes Grant – The Government will introduce a £2 billion Green Homes Grant, for homeowners and landlords to make their homes more energy efficient. In total this could support over 100,000 green jobs
  • Specifically to assist the leisure and hospitality sector, the Government has also announced:
    • A reduction in VAT to 5% for food (but not alcohol!), accommodation and attractions from 15th July until January 2021.
    • An “Eat Out to Help Out” voucher giving people 50% off food and non-alcoholic drinks up to £10 per head every Monday, Tuesday and Wednesday in August. Businesses need to register online from 13 July to be part of the scheme and the Government will publish details of participating pubs, restaurants and cafes on its website.

The plans are aimed at getting customers back into restaurants, cafes and pubs and protecting the 1.8 million people who work in them.

Find out more 

If you have any queries, or would like to discuss your requirements for the next step, please contact:

Nigel Morris, Employment Tax Director, nigel.morris@mhllp.co.uk, Tel: 07718 340634
Richard Maitland, Employment Tax Partner, richard.maitland@mhllp.co.uk, Tel 07711 373584
Stephanie Pote or Colin O’Kane, Senior HR Consultants, HRSolutions@mhllp.co.uk

The above guidance is provided for your information and is our summary of the latest position as we see it. You should seek appropriate legal and technical advice in relation to your own specific circumstances before acting on the above.

Please also note that Government advice is being updated on a regular basis.

If you are concerned about being impacted financially due to the Coronavirus, we are here to support you or if you require more specific advice on your situation and how the COVID-19 pandemic may affect your business. Reach out to discuss how we can help. https://www.macintyrehudson.co.uk/spotlight-on/covid-19-update