The National Budget – what it means for Employers and Employment
4th March 2021
With the country still in the midst of seeking to recover from the effects of Coronavirus, the Chancellor announced the 2021 budget this week with the focus on rebuilding the economy.
We’re taking a closer look at some of the key announcements and what they mean for employers and employment.
Job Retention Scheme (Furlough)
A welcome sign of support from the chancellor was the extension of the Furlough (or Job Retention) scheme until 30th September 2021 providing workers with 80% of their salaries up to the limit of £2500 per month. However the Chancellor did state that, from July, as businesses start to reopen there will be a request that employers make contributions towards the monies paid to their workers beginning at 10% for July and then 20% for the months of August and September.
Furloughing employees due to coronavirus has been a tough decision many businesses have had to make, with the accompanying minefield that is administering a workforce and its safety.
Training and development
As part of the drive to empower the working populace to get back into working after the lifting of lockdown, the Chancellor announced further funding for level 3 qualifications as well as increasing the incentives for businesses to establish Apprenticeship schemes and increased funding for traineeships.
Self Employment Support
The SEISS (not to be confused with SEIS) or Self-Employment Income Support Scheme has also been extended to the end of September allowing for a 4th and 5th grant to be applied for by self employed persons.
The 4th grant is to cover 3 months of 80% of the average monthly trading profits and whilst the 5th grant will also cover 3 months, it is more targeted to providing 80% of the average profits for 3 months only for businesses that have been affected by a drop of 30% or more of their profits. Any business that has suffered less than 30% loss of profits each month will receive a grant equalling 30% of their average monthly trading profits.
As part of his measures regarding the tax regime in the UK, the Chancellor announced that the tax allowance for individuals will increase to £12,570 but this will then be frozen.
There will be a rise in the national living wage by 2.2%.
We work with clients from the whole of the Coventry and Warwickshire region as well as further afield.