Chancellor unveils coronavirus recovery plan

Chancellor unveils coronavirus recovery plan

Chancellor unveils coronavirus recovery plan

Chancellor Rishi Sunak has announced plans for the UK’s recovery from the economic impact of the coronavirus crisis, which includes a scheme to kickstart employment for people aged 16-24.

The scheme is expected to cost around £2bn, and will support those most at risk of long-term unemployment.

It is thought that around 3.8 million people in the UK are currently facing unemployment as a result of the coronavirus crisis.

Some MP’s have suggested extending the job retention scheme until 2021.

Earlier, speaking in the House of Commons, Prime Minister Boris Johnson said the furlough scheme “cannot go on forever”.

He added that it has already saved around 4.8 million jobs.

But, MPs have warned that ending the scheme prematurely might thrust millions of people into unemployment, and risk sacrificing what has already been achieved.

Mr Sunak said that the Government has and would continue to do all it could to “protect, support and create jobs, giving businesses the confidence to retain and hire.”

The Chancellor added that although the furlough scheme has been a “lifeline for millions, it cannot and should not go on forever”.

He said that pandemic had caused the deepest global economic recession since records began, and admitted that when it ends, it will be a difficult moment.

Instead, the Chancellor has announced a number of steps in the second phase of the Government’s economic response to the crisis.

Employers who bring furloughed employees back will be incentivised by being paid £1k per employee.

In what is being called the ‘Kickstart Scheme’, employers will be paid to create new jobs offering a minimum of 25 hours per placement for new employees aged between 16 and 24.

The Government will also pay overheads and the wages of any new employees included in the scheme for up to 6 months.

Employers will be a given £1k bonus for each new employee, or £2k for each new apprentice.

The scheme opens to employers next month, with new jobs expected to start this autumn.

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