Kate Brooks

Partner, Solicitor & Head of Employment/HR Services

DATE PUBLISHED: 03 Mar 2021 LAST UPDATED: 03 Jul 2022

The Budget: HR/Employment law

At the heart of the Budget are plans to protect individual’s jobs and livelihoods, encourage decent and well paid jobs, and enhance skills.

The key points relevant to HR professionals and employers are:

  1. Furlough Scheme – extended to 30th September 2021
    • Employees continue to get 80% (subject to cap of £2,500 gross) of wages for unworked hours up until 30th September 2021;
    • The scheme will be unchanged until 40th June 2021 for employer; Like last year, employers will be required to make contributions of 10% in July and 20% in August and September; and
    • Remember that furlough payments can no longer be claimed for notice period or redundancy payment. Holiday can be used subject to the employee receiving full pay.

 

  1. National minimum wage increase to £8.91 April 2021
  1. Bigger incentives to hire apprentices, Kickstart and Lifetime Skills Guarantee.

Incentives increased to hire apprentices to up to £3,000 per apprentice.

The Kickstart Scheme provides funding for 16 to 24 years olds. Funding covers national minimum wage for 25 hours per week for 6 months, national insurance and auto enrolment costs. There is no longer a requirement to have 30 jobs.

The Lifetime Skills Guarantee helps adults to gain in demand skills to open up job opportunities.

For any employment or HR related matters, please do not hesitate to contact Kate Brooks kate.brooks@ellisjones.co.uk

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