How the ‘Mini-Budget’ Supports Employers, Training and Skills Development
Jul 10 2020
This week, Chancellor Rishi Sunak outlined the government’s ‘plan for jobs’ to boost the economy in light of the COVID-19 pandemic. His announcement included a handful of new initiatives and schemes to support both employers and jobseekers to recover after lockdown, furlough, redundancies and wavering consumer confidence.
The Chancellor’s statement included a variety of measures to help people into employment, as well as incentives for employers to employ apprentices and trainees to narrow skills gaps.
Below I’ve highlighted some important changes that might help with your staffing and staff development. There are three key changes:
The government has announced a brand new ‘Kickstart Scheme’. This will, for six months, pay wages for 25 hours per week for 16-24 year olds who were previously on Universal Credit and struggling to find work. Wages will paid at the National Minimum Wage rate, including employer’s National Insurance and minimum auto-enrolment costs. You, the employer, will claim the costs from the government. The scheme is intended specifically for those people who are not yet ‘work-ready’, and the job must be newly created, so it cannot be used to replace an existing worker. I’m sure this scheme will provide some welcome support to those employers with opportunities for inexperienced job seekers. Â
The Chancellor announced an extension to the existing traineeships programme. This means when operators offer work experience to traineeship learners they will receive £1,000 support funding. Like the Kickstart Scheme, this scheme is intended to help people who are not yet work-ready and need some support to become so. Â
Lastly, for employers who recruit a new apprentice, there will be a payment from the government (paid in part when the apprentice is taken on, the rest when they complete their apprenticeship) of £2,000 for under 25s and £1,500 for over 25s.
The detail on how these schemes will operate is not yet public. However (and this is a big however), it does appear that if you wish to take on a jobseeker through the Kickstart Scheme, you would be able to employ them as an apprentice and earn the apprentice bonus at the end of the six months period. Equally, should you have a number of opportunities and wish to work with us to run a traineeship programme (which would be a minimum of six weeks long), then your trainees could graduate from that programme onto an apprenticeship programme.
We had hoped that the Kickstart Scheme would be capable of running in tandem with an apprenticeship, thus helping operators to take on new talent and nurture them for a great career in our fabulous industry. Unfortunately, current advice is that the schemes cannot be run at the same time, however, we are working on making a strong case to the government for this to be changed. Â
It is a little disappointing that the Chancellor did not take this opportunity to open up the Apprenticeship Levy to support non-apprenticeship skills and apprentice wages, to remove the employer contribution for small employers, or to extend access to training support for people who lose their jobs and remain unemployed three months later. We hope these suggestions will be enacted in future announcements.
We have requested more information on the application of the new schemes to see how we can help our partners to navigate them and will be producing full guidance very soon.
Take care, and if there’s anything at all we can help you with please ask. Our friendly teams are available between 8:30 am 5:30 pm, seven days a week, via 0800 093 5892, or email us at [email protected]. Alternatively, you can get in touch with your local HIT contact direct.
Related articles
HIT Training Offers Chartered Management Degree Apprenticeship to Drive Business Improvement
Three Signs your Employees are Reaching Burnout – and How to Support Them
Grow your team with retail apprenticeships
The Opportunity Provider (TOP) ranked 28th in The Sunday Times Top 100 Apprenticeship Employers
Mental Health Awareness Week – Dealing with Anxiety
Train your staff through hospitality apprenticeships
How to Inspire Young People to Choose a Career in Hospitality
HIT Training Apprentice Becomes First to Achieve New Hospitality Supervisor Apprenticeship
New movement to tackle gender inequality in the kitchen
Stepping Up – It’s Time to Earn your Stripes
Protecting the Future of the Sector: Hospitality Businesses Pledge to Fund Apprenticeships Outside Their Organisation
HIT Training First to Launch New Qualification for Health and Social Care Sector
Gravetye Manor chef takes the top spot in Young National Chef of the Year
HIT Training launches intelligent apprenticeship recruitment service for hospitality and retail, in partnership with urfuture
Hospitality Unites to Launch New Graduate Apprenticeship Programme
HIT Heroes Apprentice and Employer of The Year 2020 Announced
Jill Whittaker Takes Top Honour at the 2024 Multicultural Apprenticeship Awards
Employee-owned training group signals long-term commitment to UK skills with new name
Integrating Plant Based Food into your Menu
New Graduate Apprenticeship Launched to Build Future Hospitality Leaders
John Hyde Scoops Special Recognition Award
Helping Young People Into Work: every employer can do one thing
Functional Skills: The Cornerstone of Apprenticeships
HIT partners with Hospitality Jobs UK to form new recruitment partnership
Time to Open up About Mental Health During COVID-19
Hospitality Apprenticeships Week 2021 to Showcase Industry as #Morethanajob
‘Forward with Marcus Wareing’ programme expands following huge success
Women in beer are brewing up change
Three Ways to Keep your Staff Motivated and Inspired During Lockdown 3.0
HIT Training LTD Receives Royal Recognition for Outstanding Training Impact
HIT Training Ltd strengthens its board with four new Directors
Institute of Hospitality and HIT Training Invest in the Industry’s Future
HIT Training Elevates Commitment to Diversity and Inclusion by Becoming Patrons of the Multicultural Apprenticeship Alliance
Managing Stress Levels in the Midst of a Global Pandemic
Do Hospitality Careers Need a Rebrand?
HIT Training Named in Times Top 100 Best Companies to Work for
Winners of Fired Up and Un-Tapped Apprentice Competitions 2023 announced
HIT Training Ltd scoops the award for Best Training Provider at the prestigious Apprenticeship Guide Awards
Leading the Way: Long Awaited Production Chef Apprenticeship is Launched
HIT Heroes Award Winners Announced for 2021
National Apprenticeship Awards 2020 – Open for Entries!
HIT Training and BII Collaborate on a Series of Ready to Reopen Webinars
Creating a Learn-it-All Culture
How to Minimise Kitchen Food Waste
Future-Proof Your Business and Save Big: National Insurance Savings for Employers of Apprentices Under 25
‘The Super Six’ Unveiled
There’s No Age Limit to Invaluable Training
Flexi-apprenticeships are the Answer to the Dwindling Hospitality Workforce
Apprentice Drew Dawson Crowned Winner of Toque D’or® 2019
Why we Need Apprenticeships to Build the Future
The Clink Charity identifies first candidates for in-prison apprenticeships in partnership with HIT Training
HIT Training develops UK’s first Level 5 Hospitality Operations Manager Apprenticeship
Working together with the New Government
HIT Training Ltd Receives ‘Good’ Ofsted Rating for 14th Consecutive Year
Omicron and COVID Plan B Update
What we Can Learn from the Industry About Infection Control
There is a New Star in the Hospitality Industry
The Real Barrier to Exceptional Hospitality Isn’t What You Think
New National Chef of the Year is unveiled in front of industry elite
HIT Training Ltd announces new Managing Director Mike Worley
Making 2022 The ‘Year of Retention’
HIT Training Recognised at the Foodservice Cateys 2018
Entries now open for the Craft Guild of Chefs Graduate Awards 2025
Flavour of Success at The Restaurant Show
Sodexo partners with HIT to gift £250k of levy to support hospitality apprentices
New Hospitality Academy Launches to Tackle Industry Challenges and Raise Service Standards
Election priorities: Fixing the apprenticeship levy by Jill Whittaker OBE
HIT Training Ltd Earns Prestigious Gold Membership in The 5% Club
Untapped competition: Meet the 2024 Rising Stars of Brewing
HIT Heroes Winners Unveiled in Celebration Event
HIT supports new platform to promote pub and hospitality careers
Educate Your Team on the Mental Health Benefits of Food
HIT Training Ltd Embarks on the Journey to Net Zero with Planet Mark Certification
Sodexo Culinary Academy focuses on inspiring and elevating chefs at every level
Helping Neurodiverse Professionals Succeed in Hospitality
The Newt in Somerset Unveils ‘Elevate’ – A Bespoke Hospitality Academy in partnership with HIT Training
HIT’s UnTapped Brewer Competition is back for 2025
Culture of Craft – The Rise of the Craft Apprenticeship
Meet our six Salon Culinaire apprentices!
The Future Hospitality Workforce: What Will it Look Like Following COVID-19?
Deliveroo Launches New Chef Apprenticeship Fund to Tackle Skills Shortage
Two HIT Apprentices Make MasterChef Finals
Alex Angelogiannis wows judges to take top spot in National Chef of the Year competition
Access Global Opportunities for Your Apprentices
HIT Training Launches Free Workshops to Help Close the Chef Skills Gap in the Capital
Vacherin’s Nick Smith Crowned Winner of the Craft Guild of Chefs’ National Chef of the Year
A Listening Ear Makes All the Difference: World Suicide Prevention Day
A Year of Achievement: HIT celebrates its first year under employee ownership.
Employer Newsletter – We’re here to stay
Medals All Round for our Fired Up Four!
HIT Retains One Third of Staff for Over 10 Years
Rising stars named in prestigious Young National Chef of the Year semi-final line-up
HIT Training Ltd Signs New Business Drive to Help The Nation Through COVID-19 Crisis
National Inclusion Week 2024: Why Impact Matters in Apprenticeships
UnTapped 2025 is here, and our Super Seven finalists are thirsty for success!
We Are Now a Planet Mark Certified Business
Jill Whittaker, Managing Director of HIT Training Ltd, Awarded OBE in the Queen’s Birthday Honours
Industry Collaboration Launches Talent Hub to Inspire and Retain Next Generation of Hospitality Professionals
HIT Training Recognised at the TES FE Awards 2018
HIT’s Executive Chair Jill Whittaker OBE wins award for ‘Outstanding Contribution to the Industry’