The Jobs Plan

Breaking down the Governments new jobs incentives

The Jobs Plan 

The Chancellor, Rishi Sunak, made a statement to Parliament listing a number of training and spending measures to improve employment prospects of those who may become unemployed and the thousands of young people leaving school/ college/ university this summer.

The full document can be found here:

The plan for young people and adults aged 16-to-24

There are several big measures as part of a plan for those in the 16-to-24 year old age group. The Treasury has estimated these as costing a total of £3b, but spending will depend on take-up:


Payments for employers who hire new apprentices – The government will introduce a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st January 2021. These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18 year old apprentices, and those aged under 25 with an Education, Health and Care Plan - where that applies.

Expansion of Traineeships

High quality traineeships for young people – The government will provide an additional £111 million this year for traineeships in England, to fund high quality work placements and training for 16-24 year olds. This funding is enough to triple participation in traineeships. For the first time ever, the government will fund employers who provide trainees with work experience at a rate of £1,000 per trainee. The government will improve provision and expand eligibility for traineeships to those with Level 3 qualifications and below, to ensure that more young people have access to high quality training.

Funding for staying on in further education

There is a new plan to spend £100 million to support 18 and 19 year olds in further education to take courses at Level 2 or 3 in a number of sectors. 

National Careers Service

New funding for National Careers Service – The government will provide an additional £32 million funding over the next 2 years for the National Careers Service so that 269,000 more people in England can receive personalised advice on training and work.

Sector Based Work Academies 

New funding for sector-based work academies – The government will provide an additional £17 million this year to triple the number of sector-based work academy placements in England in order to provide vocational training and guaranteed interviews for more people, helping them gain the skills needed for the jobs available in their local area.

Measures to support those who are unemployed

The Chancellor announced £1 billion for DWP to improve support for the unemployed. It is unclear how much of that will be used for training, but it will include:

  •          Expanded Youth Offer – The government will expand and increase the intensive support offered by DWP in Great Britain to young jobseekers, to include all those aged 18-24 in the Intensive Work Search group in Universal Credit.
  •          Enhanced work search support – The government will provide £895 million to enhance work search support by doubling the number of work coaches in Jobcentre Plus before the end of the financial year across Great Britain.
  •          Expansion of the Work and Health Programme – The government will provide up to £95 million this year to expand the scope of the Work and Health Programme in Great Britain to introduce additional voluntary support in the autumn for those on benefits that have been unemployed for more than 3 months. This expansion will have no impact on the existing provision for those with illnesses or disabilities in England and Wales.
  •          Job finding support service – The government will provide £40 million to fund private sector capacity to introduce a job finding support service in Great Britain in the autumn. This online, one-to-one service will help those who have been unemployed for less than three months increase their chances of finding employment.

Job retention bonus

The Chancellor confirmed that the job retention scheme will end on 31 October 2020 with no extension, but employers will get a £1,000 job retention bonus in spring 2021 for every furloughed employee brought back into work for 3 months at more than 25 hours a week.

The Kickstart Scheme

Kickstart Scheme – The government will introduce a new Kickstart Scheme in Great Britain, a £2 billion fund to create hundreds of thousands of high quality 6-month work placements aimed at those aged 16-24 who are on Universal Credit and are deemed to be at risk of long-term unemployment. Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions. The budget is £2 billion on the assumption of 300,000 people being supported at an average cost of £6,500 but the Chancellor said there will be no cap on the number of places.

Job creation measures focused on housing

There are two new measures to stimulate activity in housing and construction: 

  • £2 billion on Green Homes grants of up to £5,000 for most households (£10k for those on low income). The hope is that this will be used in 650,000 homes
  • A temporary stamp duty cut, increasing the threshold to £500,000 from now until 31 March 2021 

These actions supplement existing capital spending.  Last week the Prime Minister announced that £5 billion in capital spending would be brought forward to 2020/21 including £200 million to improve the condition of college buildings. 

Job protection measures for hospitality and tourism

There are new measures to support two sectors, hospitality and tourism.  There will be a temporary VAT rate cut from 20% to 5% for food, accommodation and attractions from 15 July 2020 to 12 January 2021.

Kick starting a return to restaurants 

There is a new high street voucher scheme to provide a 50% discount (up to £10) per head Monday to Wednesday for an eat in meal