Furlough scheme to be wound down with job retention incentives

The Government has just revealed a jobs retention bonus that will be available to businesses who can hang on to roles as the furlough scheme winds down.

Set to gradually wind down leading to the October cut off, the furlough scheme has been heavily utilised in the bike business in a bid to limit the damage to business caused by Covid-19. Those businesses that had put it to use will now be able to claim a £1,000 grant in order to guarantee a retained job.

“Leaving the furlough scheme open forever gives people false hope that i will always be possible to return to jobs they had before,” said the Chancellor in today’s statement.

Arguably, the bike business has faired better than most industries, leading some to question on trade forums whether such cuts to staffing have indeed been necessary.

Apprenticeship support

Also announced today, apprenticeships will be supported to the tune of £2,000 for each candidate taken on. Those companies taking on people aged over 25 will qualify for a £1,500 grant instead.

For young employees, Sunak referenced a “kickstart” job creation scheme that will see the Government cover the wages of new starters for six months. Attached to this is a £2 billion fund on which there will apparently be no cap on the number of places offered.

Among other pledged made, the hospitality segment is to see VAT cut from 20% to 5% for the next six months on food, accommodation and attractions. Further to that, an “eat out to help out” discount will be made available to encourage consumers back to the high street’s restaurants. Businesses who register will be able to offer discounts of 50% up to £10 per head for those dining.

For the bike industry, the key incentive remains the £50 Bike Repair Voucher that you can now read about and sign up for here.