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The end of furlough and the announcement of a new bonus scheme

The Chancellor delivered the Summer 2020 Economic Update on 8 July 2020, announcing a number of measures to support businesses including:

  1. Job Retention Bonus

Once the coronavirus job retention scheme finishes at the end of October, businesses will be able to claim a one-off bonus of £1,000 for each furloughed worker they bring back to work and continuously retain in employment until at least 31 January 2021. The bonus will apply to workers who are paid at least the lower earnings limit (£520 per month) on average between 31 October and 31 January 2021. Further details of how this will operate are due to be published at the end of this month.

  1. Kickstart scheme

A new “Kickstart” scheme will be set up for young people on Universal Credit aged between 16 and 24, who are at risk of long-term unemployment. The Kickstart scheme will pay directly to employers the cost of 25 hours’ work a week at the applicable National Minimum Wage rate plus a nominal amount for overheads. Employers may top up the government’s contribution. The scheme will open for applications in August, so the first placements can start in the autumn.

This is welcome guidance for employers in these challenging times. If you have any questions please contact Sejal Raja on


This briefing is for guidance purposes only. RadcliffesLeBrasseur LLP accepts no responsibility or liability whatsoever for any action taken or not taken in relation to this note and recommends that appropriate legal advice be taken having regard to a client's own particular circumstances.

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