Green grants, apprenticeships, and job retention bonuses – will it help?

The Government has put in place a range of measures designed to get people back to work and reduce the likelihood of redundancies. So, what’s available to help get your business back on its feet, following the Covid-19 lockdown?

Chancellor, Rishi Sunak told BBC Breakfast this morning that "We are entering one of the most severe recessions this country has ever seen. That is, of course, going to have a significant impact on unemployment and on job losses.”

He said that, through its £30bn economic stimulus package, the government was “throwing everything” at trying to reduce job losses. But he recognised that he can’t “protect every single job” as the UK now enters this severe recession.

So, what’s in place to support our sector?

We’ve highlighted, below, some of the key initiatives from yesterday’s Summer Economic Statement, which apply to the construction industry, contractors and trades. According to the Chancellor, these measures are designed to ‘reward and incentivise’ businesses as we begin to confront the economic legacy of the Coronavirus pandemic.

Jobs Retention Bonus

 With the furlough scheme coming to an end in October, Sunak announced yesterday that firms will be able to claim £1,000 for every worker they bring back from furlough. These workers must be employed from November to the end of January 2021, and must be paid at least £520 per month in order to qualify. 

Some businesses are up in arms as the bonus can be claimed by those companies who are already able to bring back furloughed staff without the need for government handouts. While other smaller businesses or self-employed people are unable to make use of the bonus but need alternative financial support instead.

Apprenticeships and Kickstart Scheme

A new £2,000 grant is available to any business taking on an apprentice in the next six months. The amount is available per apprentice as an incentive to boost new skills. 

A £2bn kickstart scheme was announced, to create more jobs for young people. The money will be used to subsidise six-month work placements for people on Universal Credit aged between 16 and 24, who are at risk of long-term unemployment.

Companies running traineeship schemes can also claim £1,000 per head for every 18 or 19-year-old year they take on.

CLC Talent Retention Scheme

Working together, the Construction Leadership Council (CLC) and the government is to set up a new website to advertise job vacancies.

”The CLC’s Construction Talent Retention Scheme will offer a critical lifeline for the construction industry, it will help the industry retain and share our exceptional talent needed to deliver vital infrastructure and support the country’s recovery plan.” Mace Group chief executive and CLC member Mark Reynolds.

The Green Homes Grant

As part of the government’s wider “green investment” package, homeowners will be able to apply for vouchers of up to £5,000 to carry out energy-saving home improvements, with up to £10,000 available for the poorest.

Under the scheme, which launches in September, the government will pay up to two-thirds of the home improvement costs. Once an accredited local supplier has provided a quote and the work has been approved, the voucher is issued. According to the Treasury, these grants could help to support more than 100,000 jobs in our sector.

No VAT on swab tests

For some businesses, returning all staff to work while social distancing measures have to be observed is just not feasible, due to lack of space. These employers may very much welcome the Jobs Retention Bonus, but be frustrated at being unable to make use of it. 

For other staff, returning to work while balancing the risk to themselves and their families is still a worry. To help reassure businesses, the government has said that employers will not have to pay tax on coronavirus swab tests provided for their staff. For some, even without the VAT this is yet another additional cost, and there are those who may believe they should not have to pay for testing at all.

What about the demand for materials?

Here at DART, we know from our customers that although the supply of some heavy materials, (such as cement) has increased, many are still in short supply. With limited supplies unable to meet demand, is it likely that businesses will be able to bring back furloughed staff, when projects may not be able to go ahead? Or can supply of these essential materials be increased in time for November when the retention bonus kicks in?

We’re interested to know what you think, and how the government’s new measures will affect your business. How will they help? Or are they no help at all?

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