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 celebrates new tri-nation partnership
HIT Training First to Launch New Qualification for Health and Social Care Sector
All Change – It’s Time to Reserve Your Apprenticeship Funding!
The Future Hospitality Workforce: What Will it Look Like Following COVID-19?
Jill Whittaker, Managing Director of HIT Training Ltd, Awarded OBE in the Queen’s Birthday Honours
HIT Training Named in Times Top 100 Best Companies to Work for
Hospitality Unites to Launch New Graduate Apprenticeship Programme
HIT Training Ltd Embarks on the Journey to Net Zero with Planet Mark Certification
Employer Newsletter – We’re here to stay
‘Forward with Marcus Wareing’ programme expands following huge success
We’re Unmasking Talent in the Hospitality Industry with the Launch of the HIT Heroes Awards
Don’t Waste: The Future of Hospitality
HIT Heroes Award Winners 2022
Update to our company name
It’s official – our SEND pilot is now permanent!
HIT Training Ltd moves to employee ownership
Election priorities: Fixing the apprenticeship levy by Jill Whittaker OBE
Brewer Apprenticeship Graduation Event: Celebrating Brewing Talent and Achievement
The Power of Adding Plant-Based to your Menu
Apprentice Drew Dawson Crowned Winner of Toque D’or® 2019
Educate Your Team on the Mental Health Benefits of Food
Future-Proof Your Business and Save Big: National Insurance Savings for Employers of Apprentices Under 25
There is a New Star in the Hospitality Industry
Hospitality Apprenticeships Week 2021 to Showcase Industry as #Morethanajob
How to Offer a Degree Apprenticeship for Employers
Culture of Craft – The Rise of the Craft Apprenticeship
Winners of Fired Up and Un-Tapped Apprentice Competitions 2023 announced
UnTapped 2025 is here, and our Super Seven finalists are thirsty for success!
HIT Training develops UK’s first Level 5 Hospitality Operations Manager Apprenticeship
Untapped competition: Meet the 2024 Rising Stars of Brewing
John Hyde Scoops Special Recognition Award
HIT Heroes Apprentice and Employer of The Year 2020 Announced
What are apprenticeships? A guide for employers.
How to Inspire Young People to Choose a Career in Hospitality
New Principal appointed to HIT Chef Academy
Rising stars of the UK culinary scene revealed for Young National Chef of the Year final
HIT Training Receives Matrix Accreditation
Two HIT Apprentices Make MasterChef Finals
Flexi-apprenticeships are the Answer to the Dwindling Hospitality Workforce
New Hospitality Academy Launches to Tackle Industry Challenges and Raise Service Standards
Working together with the New Government
National Apprenticeship Awards 2020 – Open for Entries!
Introducing the Executive Development Network (EDN)
HIT Untapped competition: Meet the 2026 Stars of Brewing
Center Parcs Celebrates Apprentice Trailblazers
HIT Training Features for Fourth Time in The Sunday Times’ Top 100 Best Companies to Work for’
Government announces major youth employment drive and apprenticeship reforms
Vacherin’s Nick Smith Crowned Winner of the Craft Guild of Chefs’ National Chef of the Year
Turn a first job into a future career with a foundation apprenticeship
The Real Barrier to Exceptional Hospitality Isn’t What You Think
The Clink Charity identifies first candidates for in-prison apprenticeships in partnership with HIT Training
Institute of Hospitality and HIT Training Invest in the Industry’s Future
HIT’s UnTapped Brewer Competition is back for 2025
‘The Super Six’ Unveiled
HIT Training Launches Free Workshops to Help Close the Chef Skills Gap in the Capital
Helping Young People Into Work: every employer can do one thing
How to Minimise Kitchen Food Waste
Integrating Plant Based Food into your Menu
HIT produces 1500 free meals on National Hospitality Day
What employers need to know about new funding rules
HIT Heroes Award Winners 2023
HIT Training Launches Suite of Training Courses and Workshops to Upskill Hospitality Teams
Free online assessment to help employers shape their workforce
New Graduate Apprenticeship Launched to Build Future Hospitality Leaders
It’s Time to Take Unnecessary Food Waste off the Menu
HIT Training Wins Award for Championing Social Mobility Through Apprenticeships
Jill makes Public Sector Catering’s ‘Most Influential’ list
What Are Flexible Apprenticeships?
Introducing the New Normal for HIT’s Apprenticeship Delivery
Do Hospitality Careers Need a Rebrand?
Mental Health Awareness Week – Dealing with Anxiety
Sodexo partners with HIT to gift £250k of levy to support hospitality apprentices
Stepping Up – It’s Time to Earn your Stripes
Supporting Employers During the Economic Recovery
An Industry Collaboration
HIT Retains One Third of Staff for Over 10 Years
New National Chef of the Year is unveiled in front of industry elite
Medals All Round for our Fired Up Four!
HIT Training Ltd scoops the award for Best Training Provider at the prestigious Apprenticeship Guide Awards
Developing an Apprenticeship Strategy
HIT supports new platform to promote pub and hospitality careers
The Young National Chef of the Year Finalists Have Been Revealed
The Opportunity Provider (TOP) ranked 28th in The Sunday Times Top 100 Apprenticeship Employers
New movement to tackle gender inequality in the kitchen
Research Reveals a Positive Change in Perceptions of Hospitality Careers
The Newt in Somerset Unveils ‘Elevate’ – A Bespoke Hospitality Academy in partnership with HIT Training
How to Manage Stress: Stress Awareness Month 2021
A Year of Achievement: HIT celebrates its first year under employee ownership.
HIT Celebrates Hospitality Day
HIT Training and BII Collaborate on a Series of Ready to Reopen Webinars
HIT Heroes Award Winners Announced for 2021
It’s ‘Time to Talk’
Boost Your Mental Health Through Small Acts of Kindness
Leading the Way: Long Awaited Production Chef Apprenticeship is Launched
Industry Collaboration Launches Talent Hub to Inspire and Retain Next Generation of Hospitality Professionals
Budget Reflections: Key Impacts on Skills and Training
HIT Launches New Fish Friers Apprenticeship
What we Can Learn from the Industry About Infection Control
Train your staff through hospitality apprenticeships
