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Chancellor announces new Job Retention Bonus

IIn his summer budget, the Chancellor has announced a new Job Retention Bonus of £1,000 per employee who employers bring back to work from furlough leave. Further details are awaited but in summary so far:

  1. The employee must have been on furlough;

  2. They are brought back into work and continuously employed from the 1 November to the end of January 2021;

  3. “It is vital they aren’t returning for the sake of it – they need to be doing decent work”;

  4. They must be paid at least £520 on average, each month, the equivalent of the lower earnings limit in National Insurance.

  5. Employers will be able to claim the bonus from February 2021 once accurate RTI data to 31 January has been received.

The "job retention bonus" could cost as much as £9.4bn if every furloughed worker is brought back, but initial commentary is the amount is not enough, so many employers will be unable to bring such employees back.

More information about this scheme will be available by 31 July and full guidance will be published in the Autumn.



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