2021 Budget news
On 3 March 2021 the Chancellor, Rishi Sunak, announced his Budget for 2021/22, he covered plans for the recovery of the economy, business support and as part of this he announced plans for employment support for businesses.
Below we have highlighted just some of points announced and their impact on small businesses. We are aware that the full details of these are not yet released, once we have them, we will of course update you.
What does the Employment Support look like?
The Chancellor announced a number of measures in an attempt to protect jobs and reduce redundancies. Although we have already seen an incentive for Employers to recruit apprentices, he announced this is increasing.
The furlough scheme, which was due to end on 30 April this year, it will now be extended until the end of September 2021.
The Furlough scheme will change as of July, the Government will continue to cover the full 80% of wages for hours not worked until the end of June 2021; at this point Employers will then be required to contribute the following amounts:
- 10% in July
- 20% in August
- 20% in September
Employers in Small/Medium Business will continue to be eligible to claim Statutory Sick Pay (SSP) costs per Employee from the Government.
The Employer incentive for taking on an apprentice of any age has been increased to:
- £3k for each new apprentice
This is an increase from the previous £2k for over 25s and £1.5k for 16-25.
The Kickstart and Restart programmes will continue to support businesses helping the long-term unemployed.
He also announced an increased investment of £126m which will triple traineeships.
In April, as expected the National Living Wage (NLW) will increase to £8.91.
The changes to the CJRS
We can confirm the changes to the scheme (CJRS)as detailed below:
For periods from 1 May 2021 onwards, Employers will be able to claim for any eligible Employees who were on the Employers PAYE payroll on 2 March 2021.
To do this as an Employer you must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying HMRC of earnings for the Employee you are submitting the claim for. As an Employer you do not need to have used the scheme before to make a claim.
How will it change?
- The UK Government will continue to pay 80% of Employees usual wages for the hours not worked, up to a cap of £2,500 per month, up to the end of June 2021.
- For periods in July, CJRS grants will cover 70% of employees usual wages for the hours not worked, up to a cap of £2,187.50.
- This will change is August and September and reduce to 60% of the Employees usual wages up to a cap of £1,875.
- As an Employer you will need to continue to pay your furloughed Employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month.
- For example; for the periods between July and September, as an Employer will need to fund the difference between this and the CJRS grants yourself.
- As an Employer you can also top up wages above the 80% if they wish, this is at your own discretion and you are under no obligation to do so.
How can we help you?
We are here to support you with any HR matter you may have, this includes any of the plans as set out to aid recovery, we can provide you with advice, guidance and any of the tools you need in relation to:
Our support is comprehensive, we can support you as much or as little as you need, we can support you in any other matter that may not be detailed above.
How to get in touch?
If you need any help, support, or guidance or would like to hear more then get in touch with a member of the HR and You team on: 0333 006 9489 or email us at [email protected]