During his Summer Statement, the chancellor announced key initiatives to help the UK economy recover from the impact of the coronavirus pandemic.
The introduction of the Job Retention Bonus was high up on the agenda.
The Job Retention Bonus is a one-off payment to employers for every furloughed employee retained from November 2020 (due to the furlough scheme ending October 2020) to the end of January 2021. The government will award a £1,000 bonus to the employer for each worker still employed by January 2021.
Employees must earn at least £520 per month (the lower earning limit for national insurance) between November 2020 and January 2021 in order for employers to be eligible for the pay-out.
The Chancellor, Rishi Sunak, said “If you stand by your workers, we will stand by you,” and continued “So if employers bring back all 9m people who have been furloughed, this would be a £9bn policy to retain people in work.”.
The chancellor confirmed the bonus payments will be made from February 2021 with further details about the scheme to be announced by the end of July.
