An additional £9.4 billion to secure employment in the UK

Recently, to mitigate the impact of the pandemic and protect the increasingly fragile job market, UK Chancellor Rishi Sunak announced a £30 billion spending package aimed at retaining jobs and revitalizing the economy hit hard by the pandemic.

Under the new plan, if businesses recall furloughed employees and retain them until the end of January 2021, the government will reward the business with a £1,000 subsidy for each employee, provided that the employee earns at least £520 per month. This plan is estimated to cover more than 9 million jobs, with the bonus cost expected to reach £9.4 billion.

At the same time, the new plan focuses on youth employment by setting up an initial £2 billion government fund to help employers hire young people aged 16 to 24. This fund will cover six months of wages and daily expenses for these young workers, potentially helping 300,000 young people find jobs.

The plan requires new positions for young people, with at least 25 working hours per week paid at the national minimum wage. For a 24-year-old, for example, the total government subsidy amounts to £6,500.

Additionally, companies will receive a £2,000 subsidy for each apprentice aged 18 to 24 they hire and a £1,500 subsidy for hiring apprentices aged 25 and above.

This is the first time the UK government has directly subsidized businesses to hire young people, aiming to provide more opportunities for them.

Furthermore, the government will increase funding for training and apprenticeship programs. According to The Wall Street Journal, the UK's new stimulus plan marks the beginning of the second phase of government spending and tax cuts, aimed at boosting demand and giving businesses the confidence to bring employees back to work post-lockdown.

Besides employment, this round of the rescue plan includes four other major aspects:

1. Real Estate: Stamp Duty Reduction - Under the new stamp duty policy, whether for new builds or existing homes, the threshold for residential property stamp duty will be raised from £125,000 to £500,000 if completed by March 31, 2021. The Treasury expects that 90% of home buyers will benefit from this change, saving up to £15,000 in taxes each.

2. Dining: Half-Price Policy - Starting in August, all restaurants registered on the government website will offer a 50% discount from Monday to Wednesday, with a maximum reduction of £10 per person. The government will reimburse the restaurants within five working days. This policy aims to encourage dining out and help the food service industry, protecting the jobs of 1.8 million employees.

3. Leisure: VAT Reduction - The VAT for restaurants, pubs, tourism, and leisure industries will be reduced from 20% to 5% for six months.

4. Environmental and Emissions Reduction: Home Energy Retrofit - From September, homeowners can apply for up to £5,000 in vouchers for energy-efficient home upgrades, with low-income families eligible for up to £10,000. Additionally, the government will allocate £1 billion to improve energy-saving and emission-reduction equipment in schools, hospitals, and other public institutions.

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Chancellor Rishi Sunak stated, “When we released the Spring Budget in March, we knew everyone was worried about rising unemployment. We will do everything we can to ensure that everyone has the opportunity to find a good job and live a stable life.”