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HM Treasury Summer Statement – A Plan for Jobs – Cogent Skills

HM Treasury Summer Statement – A Plan for Jobs

Chancellor Rishi Sunak – “No one will be left without hope”

As expected, the Chancellor focused significantly on jobs in today’s (8th July) Summer Statement. The Chancellor began his statement, stating that the government will do “all we can” to help prevent job losses in the wake of Covid-19.

A new scheme was announced, the Kickstart Scheme, which will directly pay employers to create jobs for 16-24 year olds for six months, with a minimum of 25hrs a week, paid at least the minimum wage, with training and support to find a permanent job. Sunak also announced the government will pay employers £1,000 to take on new trainees. The Kickstart Scheme will start in the autumn, to support 16-19 school leavers, the government will provide £100bn for more places on Level 2 and 3 courses, particularly in engineering.

Another announcement focused on Apprenticeships, with the Chancellor stating:

“For the next six months we’ll pay businesses to hire young apprentices, with a payment of £2,000. We’re also introducing a brand-new bonus to hire apprentices aged 25 and over, with a payment of £1,500.”

 Careers advisors and the importance they play in young people’s lives was also noted by the Chancellor.

“The evidence says careers advice works, so we’ll fund it, with an additional £32m to recruit career advisers and provide bespoke advice and careers guidance for over a quarter of a million more people.”

The current government funding for furloughed employees will end in October, but a Job Retention Bonus of £1,000 will be available for each furloughed employees who is retained until January 2021.

The existing Traineeships programme for young people will have extra funding amounting to £111million. Employers can receive £1,000 per trainee, and the programme is expanded up to Level 3 training.

A new Office for Talent will be established to attract, retain and develop top research and science talent.

A £300m investment in World Class Laboratories infrastructure in universities and institutes has also been announced.