Professional October 2020

COVID-19 news

Kickstart scheme launches DETAILS ABOUT the scheme, which was announced in the 2020 summer mini- budget as part of support measures for businesses during the pandemic, have been released (https://bit.ly/2ZCQw3B). Employers can use Kickstart to create new six-month job placements for young people who are currently on universal credit and at risk of long-term unemployment. The placements: ● should support the participants to develop the skills and experience they need to find work after completing the scheme ● be new jobs, that do not replace existing or planned vacancies or cause existing employees or contractors to lose or reduce their employment. The roles must be: ● for a minimum of 25 hours per week,

for six months ● paid at least the national minimum wage (NMW) for their age group, and ● should not require people to undertake extensive training before beginning the placement. Funding is available following a successful application process for 100% of the relevant NMW for 25 hours a week, plus associated employer National Insurance contributions and employer minimum automatic enrolment contributions. There is also £1,500 per job placement available for setup costs, support and training. Applications must be for a minimum of thirty placements, but employers unable to offer this many can partner with other organisations to reach the minimum number. A representative applying on

behalf of a group of employers can get £300 of funding to support the associated administrative costs of bringing together the employers. Although the scheme, which is available in England, Scotland and Wales, is not an apprenticeship, participants may move on to an apprenticeship at any time during or after placement. Once a job placement is created, a second person can fill it once the first successful applicant has completed their six-month term. The Department for Work and Pensions will choose the applicants for the jobs and youngsters will be referred into the roles through their JobCentre Plus work coach. The government expects the first placement to begin at the start of November.

CJRS fraud and errors IN EARLY September, Jim Harra, head of HM Revenue & Customs (HMRC), informed members of parliament on the Public Accounts Committee that the department has “made an assumption for the purposes of our planning that the error and fraud rate in [coronavirus job retention scheme] could be between 5% and 10%. That will range from deliberate fraud through to error.” This estimate suggests up to £3.5bn may have been claimed fraudulently or paid out in error.

Reskilling and retraining ACCORDING TO a recent study by CV- Library, a leading job board, 59% of Brits have said they’re willing to reskill and retrain in a new line of work following the coronavirus pandemic. The study reveals that the most common reason for people wanting to reskill was because they want to make themselves more employable Recent pandemic statistics THE OFFICE of National Statistics (ONS) is regularly publishing experimental data on the impact of the coronavirus on the UK economy and society. These faster indicators are created using rapid response surveys, novel data sources and experimental methods. Wave 12 of the ONS’s Business Impact of

(51.8%); followed by the fact that they can’t find a job (32.4%); and because they want better job security (32%). In addition, 30.3% say they want to do a more meaningful job, 29.1% want a role with a higher salary and 18.5% say they simply want to change industries. Lee Biggins, founder and chief executive Coronavirus (COVID-19) Survey (for the period 10 August to 23 August 2020), which was released on 10 September 2020, reveals that: ● of those businesses which had not permanently ceased trading, 11% of the workforce were on partial or furlough leave, 36% were working remotely, and 49%

officer of CV-Library, comments: “The job market is going to be impacted by the pandemic for a long time… [and] going forward, employers will need to be more open to hiring people from different sectors and professionals must be more open to opportunities outside of their traditional remit.” were working at their normal place of work ● the arts, entertainment and recreation industry had the highest proportion of their workforce on partial leave or on furlough leave at 41%, followed by the accommodation and food service activities industry at 29%, and the administrative and support service activities industry 18%.

Extracts from Wave 12 of the ONS’s Business Impact of Coronavirus (COVID-19) Survey

Business currently trading

Businesses temporarily closed or paused trading

All businesses (excluding those permanently ceased trading)

Proportion of workers on furlough leave and receiving pay top-ups Workforce of furlough leave 11%

62% 45% 64%

11% 40% 63%

Businesses providing top-ups on top of CJRS

40% 63%

Proportion of furloughed workforce receiving top-ups

Percentage of businesses applying for governemt schemes Coronavirus job retention scheme

77% 20%

75% 21%

77% 20%

Not applied for any of the schemes

| Professional in Payroll, Pensions and Reward | October 2020 | Issue 64 4

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