Budget 2021 and what this means for your business

Rishi Sunak, Chancellor shared his 2021/2022 fiscal year budget with us yesterday and here are some highlights for you: 

Job Retention Scheme (Furlough)  

The good news for many businesses is that the Furlough scheme has been extended until the end of September 2021 at the 80% rate, giving employers the support, they need while getting their business back on track as we move out of lockdown.  

The government is due to begin opening the economy up slowly within the next few weeks and as such this will enable employers to begin to return to some form of normal.  

The scheme will be there during this transition period to give businesses the time they need in the hope that they can retain their workforce and save jobs.   

As before with the Furlough scheme, employers will be asked to contribute. From July employers will need to provide 10% contributions towards salaries and in August and September this contribution increases to 20%.   

 

Statutory Sick Pay (SSP)  

Small and medium-sized employers will continue to be able to reclaim up to two weeks of eligible SSP costs from the government.  

 

Self-employed works grants available  

Self-employed workers, estimated at approximately 600,000, will be eligible to claim further grants of up to 80% of their average trading profits (subject to a maximum cap). This does not however cover individuals who pay themselves a salary and dividends through their own business.  

 

Apprenticeships  

In order to provide additional career and work opportunities to young adults the government are doubling their efforts to support apprenticeships of all types with no restrictions on age, with business grants of £3,000 per apprentice taken on between April – September 2021.  

Top up payments of £1,000 will also be made available throughout the education, health and care plans, meaning some businesses could be eligible to £4,000 per apprentice. 

Flexi-job  

It was also announced that a new ‘flexi-job’ apprenticeship programme in England will be rolled out enabling apprentices to work with a number of employers in one sector.  

 

Traineeships  

The government are all committed to providing an additional £126 million in England for ‘high quality’ work placements and training for individual between the age of 16- to 24-year-olds.   

 

Help to Grow Scheme  

The government will support 90% of the costs for a 12-week programme that will equip SMEs with the tools to grow their businesses and thrive. This programme is set to up-skill approximately 130,000 small and medium sized- enterprises over 3 years.    

There is still more guidance required on this, so as soon as we know we will share more with you.  

If you need HR guidance and support as your business comes out of lockdown and your staff, come back to full or part time work, please speak to one of our HR Consultants today. We can provide you with HR Strategic advice and help you navigate the new recovery packages being made available by the government. We can also support you with any new employment legislation updates that come into force this April. 

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