The Chancellor, Rishi Sunak outlined several economic plans during his budget speech, including another four-month extension of the furlough scheme to the end of September.
Here are a few highlights in relation to the people profession:
- the government will still cover 80 per cent of workers’ salaries for the hours they are not working, up to a maximum of £2,500 a month, with employers only asked to pay pension and national insurance contributions.
- from July businesses will be expected to contribute 10 per cent of employees’ wages for the hours not worked, increasing to 20 per cent in August and September.
- the doubling of incentive payments for businesses taking on new apprentices of any age to £3,000.
- and a ‘help to grow’ scheme offering free MBA-style management training for up to 130,000 leaders of SMEs, with £520m to be put into online courses from top business schools and a 50 per cent discount for new software.
Eligibility from May 2021
For periods from 1 May 2021 onwards, you will be able to claim for eligible employees who were employed by you and on your PAYE payroll on 2 March 2021. This means you must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021. This is great news for employers, as it means that you can continue to have staff on furlough even after your business has reopened.
The HR Hub Plus Team