1000 bonus

We will check that your employees have been paid at least the minimum income threshold by checking information you’ve submitted through full payment submissions via real time information (RTI).

You cannot claim the bonus for any employees that you have not paid using the coronavirus job retention scheme grant because you have repaid all the grant amounts you claimed for them. This applies regardless of the reason why you repaid the grant amounts.

Check if you can claim the job retention bonus from 15 february 2021

Find out if you’re eligible to claim the job retention bonus and what you need to do to claim it. You will be able to claim it between 15 february 2021 and 31 march 2021.

This guidance was withdrawn on 5 november 2020

The job retention bonus will no longer be paid in february, as the coronavirus job retention scheme has been extended until the end of march 2021. Further details about the extension are available.

You cannot claim the job retention bonus until 15 february 2021. This guidance will be updated by the end of january 2021 with how to access the online claim service on GOV.UK.

The job retention bonus is a £1,000 one-off taxable payment to you (the employer), for each eligible employee that you furloughed and kept continuously employed until 31 january 2021.

You’ll be able to claim the bonus between 15 february 2021 and 31 march 2021. You do not have to pay this money to your employee.

Who can claim

You can claim the bonus if you’re an employer who has furloughed employees and made an eligible claim for them through the coronavirus job retention scheme. Your employee must have been eligible for the coronavirus job retention scheme grant for you to be eligible for the bonus.

You can still claim the bonus if you make a claim for that employee through the job support scheme. Guidance on the job support scheme will be published soon.

If you have repaid coronavirus job retention scheme grant amounts to HMRC

Employees you can claim for

You can claim for employees that:

You made an eligible claim for under the coronavirus job retention scheme

You kept continuously employed from the end of the claim period of your last coronavirus job retention scheme claim for them, until 31 january 2021

Are not serving a contractual or statutory notice period for you on 31 january 2021 (this includes people serving notice of retirement)

You paid enough an amount in each relevant tax month and enough to meet the job retention bonus minimum income threshold

If HMRC are still checking your coronavirus job retention scheme claims, you can still claim the job retention bonus but your payment may be delayed until those checks are completed.

HMRC will not pay the bonus if you made an incorrect coronavirus job retention scheme claim and your employee was not eligible for the coronavirus job retention scheme.

Employees who have been transferred to you under TUPE or due to a change in ownership

You may be eligible to claim the job retention bonus for employees of a previous business which were transferred to you if:

TUPE rules applied

The PAYE business succession rules applied

The employees were associated with the transfer of a business from the liquidator of a company in compulsory liquidation where TUPE would have applied if the company was not in compulsory liquidation

To claim the job retention bonus for employees that have been transferred to you, you must have furloughed and successfully claimed for them under the coronavirus job retention scheme, as their new employer. The employees must also meet all the relevant eligibility criteria for the job retention bonus.

This means that you will not be able to claim the job retention bonus for any employees who are transferred to you after the coronavirus job retention scheme closes on 31 october 2020.

Claiming for an individual who’s not an employee

You can claim the job retention bonus for individuals who are not employees, such as office holders or agency workers, as long as you claimed a grant for them under the coronavirus job retention scheme and the other job retention bonus eligibility criteria are met.

The minimum income threshold

To be eligible for the bonus you must make sure that your employees have been paid at least the minimum income threshold.

To meet the minimum income threshold you must pay your employee a total of at least £1,560 (gross) throughout the tax months:

6 november to 5 december 2020

6 december 2020 to 5 january 2021

6 january to 5 february 2021

You must pay your employee at least one payment of taxable earnings (of any amount) in each of the relevant tax months.

The minimum income threshold criteria apply regardless of:

How often you pay your employees

Any circumstances that may have reduced your employee’s pay in the relevant tax periods, such as being on statutory leave or unpaid leave

We will check that your employees have been paid at least the minimum income threshold by checking information you’ve submitted through full payment submissions via real time information (RTI).

What payments are included in the minimum income threshold

Only payments recorded as taxable pay will count towards the minimum income threshold. Taxable pay is reported to HMRC as a single figure through full payment submissions via real time information (RTI).

If you are making redundancies

If you make redundancies, you must comply with the normal rules for redundancy, which include using fair redundancy criteria. These rules apply even if this means that fewer of your employees are eligible for the job retention bonus.

Get ready to claim

You cannot claim the bonus until 15 february 2021. This guidance will be updated by the end of january 2021 with details on how to access the online claim service on GOV.UK.

Before you can claim the bonus, you will to need to have reported all payments made to your employee between 6 november 2020 and 5 february 2021 to HMRC through full payment submissions via real time information (RTI).

There are some steps you need to take now to make sure you’re ready to claim.

Still be enrolled for PAYE online

Comply with your PAYE obligations to file PAYE accurately and on time under real time information (RTI) reporting for all employees between 6 april 2020 and 5 february 2021

Keep your payroll up to date and make sure you report the leaving date for any employees that stop working for you before the end of the pay period that they leave in

Use the irregular payment pattern indicator in real time information (RTI) for any employees not being paid regularly

Comply with all requests from HMRC to provide any employee data for past coronavirus job retention scheme claims

Using an agent to do PAYE online and claim the job retention bonus

If you use an agent who is authorised to do PAYE online for you, they will be able to claim the job retention bonus on your behalf.

This guidance will be updated by the end of january 2021 with details on how agents can claim the bonus for you.

Tax treatment of the job retention bonus

You must include payments you receive under the scheme as income when you calculate your taxable profits for income tax and corporation tax purposes.

Businesses can deduct employment costs as normal when calculating taxable profits for income tax and corporation tax purposes.

Individuals with employees that are not employed as part of a business (such as nannies or other domestic staff) will not have to pay tax on grants received under the scheme.

When the government ends the scheme

You will have until 31 march 2021 to make a job retention bonus claim after which the scheme will close. No further claims will be accepted after this date.

You will not be able to claim until 15 february 2021 and this guidance will be updated by the end of january 2021 with details on how to access the online claim service.

Contacting HMRC

We are receiving very high numbers of calls. Contacting HMRC unnecessarily puts our essential public services at risk during these challenging times.

Get help online

Use HMRC’s digital assistant to find more information about the coronavirus support schemes. You can also contact HMRC if you cannot get the help you need online.

Other help and support

You can watch videos and register for free webinars to learn more about the support available to help you deal with the economic impacts of coronavirus.

Further details of the job retention bonus announced

Further details of how jobs will be protected through the government’s new job retention bonus were unveiled by HMRC today.

Employers can claim the bonus for all eligible employees who have been furloughed

It comes as employers set to start contributing to the furlough scheme as staff return to work and the economy reopens

The bonus – announced by chancellor rishi sunak as part of his plan for jobs last month – will see businesses receive a one-off payment of £1,000 for every previously furloughed employee if they are still employed at the end of january next year.

The scheme is designed to continue to support jobs through the UK’s economic recovery from coronavirus by encouraging and helping employers to retain as many employees who’ve been on furlough as possible.

A policy statement published by the HMRC today gives employers further details on eligibility requirements and how they can claim the bonus. Under the terms:

Employers will receive a one-off payment of £1,000 for every employee who has previously been furloughed under coronavirus job retention scheme (CJRS) – if they remain continuously employed to the end of january 2021

To ensure the jobs are meaningful well-paid, employees must earn at least £520 (the national insurance lower earnings limit) a month on average between the beginning of november and the end of january

Those who were furloughed and had a claim submitted for them after the 10 june (when the CJRS closed to new entrants), because they were returning from paternal leave or time serving as a military reservist will also be eligible for the bonus as long as they meet the other eligibility criteria

Employers will also be eligible for employee transfers protected under TUPE legislation, provided they have been continuously employed and meet the other eligibility criteria and the new employer has also submitted a CJRS claim for that employee

Chancellor of the exchequer, rishi sunak, said:

Our successful furlough scheme will continue to help businesses and protect millions of jobs until the end of october – and our additional £1,000 job retention bonus will ensure this support continues as our economy reopens and people return to work.

We will support jobs and businesses as we come out of this crisis just as we did as we came into it.

As the scheme is designed to protect jobs, those who are serving notice for redundancy will not be eligible for the bonus.

The publication comes as changes to the CJRS- which has so far protected 9.5 million jobs across the UK – come into force. From tomorrow (saturday august 1), the government will continue to pay 80% of furloughed employees wages, but employers will have to pay employers national insurance contributions and pension contributions for the hours the employee is on furlough.

The changes to the CJRS are part of the government’s economic plan to tackle coronavirus. The first phase was about protection, safeguarding millions of businesses and jobs through our unprecedented loans and employment support schemes. The second, as the chancellor set out earlier this month, was about protecting, supporting and creating jobs. The third and final phase is to rebuild at the budget and comprehensive spending review in the autumn.

Employers will get £1,000 bonus for taking back furloughed staff

The money is designed to stop people being made redundant when furlough ends

Chancellor rishi sunak has announced a new scheme that could cost up to £9 billion to encourage employers to bring back the workers they furloughed.

Mr sunak said that the furlough scheme cannot go on indefinitely and will be wrapped up in october, but promised to pay companies £1,000 for each employee if they take back the staff that they sent home as part of the scheme.

The jobs retention bonus will be paid to companies if they keep the employee in work until january, and pay them at least £520 per month, on average.

If all furloughed workers are taken back by their employer the scheme will cost the government £9 billion, the chancellor said.

“leaving the furlough scheme open forever gives people false hope that it will always be possible to return to the jobs they had before,” he told mps.

“the longer people are on furlough, the more likely it is their skills could fade, and they will find it harder to get new opportunities. It is in no-one’s long-term interests for the scheme to continue forever, least of all those trapped in a job that can only exist because of government subsidy.

Mr sunak added: “today, we’re introducing a new policy to reward and incentivise employers who successfully bring furloughed staff back – a new jobs retention bonus.

“it’s vital people aren’t just returning for the sake of it – they need to be doing decent work. So for businesses to get the bonus, the employee must be paid at least £520 on average, in each month from november to the end of january.

“our message to business is clear: if you stand by your workers, we will stand by you.”

More than 9.4 million people have been put on furlough, with the government covering up to 80% of their salaries, at a cost of £27.4 billion, according to the latest figures.

Kate nicholls, the head of trade body UK hospitality, said: “this is hugely positive and allows us to be able to transition people from furlough back to employment in hospitality – key as we face prolonged suppressed revenues and 1.5 million still furloughed.”

Furlough extended until march, job retention bonus scrapped

The furlough scheme has been extended until the end of march 2021, with the government continuing to cover 80% of employees’ wages at firms affected by coronavirus restrictions, the chancellor rishi sunak has announced.

In a statement to the house of commons this afternoon, sunak said employers will only be required to cover national insurance and pension contributions for employees who have been furloughed under the extended coronavirus job retention scheme, which has essentially reverted back to the scheme that was in place between march and august 2020.

Our highest priority remains the same – to protect jobs and livelihoods” – rishi sunak

However, he noted that the level of wage support offered to employers would be reviewed in january, when organisations may be asked to contribute more depending on how the economy is recovering.

Sunak clarified that the support will also apply to employers in scotland, wales and northern ireland, as there had been confusion surrounding whether the extended CJRS was available to devolved nations when it was announced alongside england’s 28-day lockdown last weeked.

“our highest priority remains the same – to protect jobs and livelihoods,” said sunak.

The planned job support scheme will essentially be replaced by the furlough scheme for the time being.

He added that the job retention bonus –a £1,000 one-off payment to firms that had retained previously-furloughed staff until the end of january 2021 – would be scrapped for now and replaced with a new “retention incentive” that would be deployed at an “appropriate time”.

The employment support scheme for the self-employed is being made more generous and will be worth 80% of profits, instead of 40%.

Covid-19 latest

His announcement came just hours after the bank of england launched a £150bn stimulus package designed to lower borrowing costs to help struggling businesses and individuals.

Pressure on the government to extend support for employers has mounted over recent weeks, as coronavirus infections have risen and restrictions were reintroduced in parts of the UK.

The level of financial support offered to employers has gradually fallen since the CJRS was introduced in march, with the government covering 60% of furloughed employees’ wages in october. That changed on saturday when the prime minister announced the lockdown that started in england today, together with an extension of the CJRS “until december”.

In fact, the CJRS has not been extended, but restarted, with the rate of support last seen in august and eligibility applied to all staff, not just those previously furloughed between march and june.

Under the government’s tiered approach to lockdown and the postponed job support scheme, workers in areas subject to the most stringent tier 3 measures receive 67% of their normal salary up to a maximum of £2,100 a month.

Labour’s shadow chancellor anneliese dodds criticised the government’s slow response to the economic fallout of the local lockdowns imposed under the tier system and the uncertainty this had created for businesses, and noted the government hadn’t acted when wales implemented a two-week ‘firebreak’ lockdown.

She also referred to the extensions as the fourth major change to furlough in six weeks.

Sunak responded: “it is not a weakness to be agile and fast-moving in the face of a crisis, but rather a strength.”

Confusion, but relief

Responding the the announcement, CIPD chief executive peter cheese said the frequent changes to the support on offer had left employers confused and many job had been lost unnecessarily.

“employers have been left confused by the government’s plans to protect jobs over the last few weeks, with many redundancies triggered over the uncertainty around the end of the furlough scheme and the introduction of two new job support schemes,” he said.

“jobs have already been lost unnecessarily through short-term thinking because of the lack of longer term certainty of support, and it is crucial policy makers try and look further ahead and work with employers to help them plan forwards and protect employment as much as possible.

“we would also urge government to provide more support for those people who do lose their jobs with funding for training, coaching and support to find alternative work.”

Musab hemsi, a partner at law firm lexleyton said the news would come as a relief to many struggling organisations, but more information was still required to enable firms to plan effectively.

“it will give business leaders the financial assurance and time they need to plan and weigh up their options as they look beyond this lockdown with a view to reopening, in some capacity, for the festive period,” said hemsi.

“now that businesses have this commitment from the chancellor, a period of stability is sorely needed. UK companies have been through a turbulent period and government support has at times been changed at the last minute and announced without sufficient information for businesses. We need to see a treasury direction – ideally this week – to enshrine the new plan and give employers the information they need. From here, businesses should have a solid foothold to firm up their plans for the remainder of the year and looking ahead to 2021.”

A ‘good move’

Neil carberry, chief executive of the recruitment and employment confederation, said: “businesses want support that is stable across the crisis, rather than changing week-to-week. So the extension of the furlough scheme to the end of march is a good move.

“but there is more to do. The fight against the virus is being compromised by the failure to fund statutory sick pay for every worker if they need to self-isolate. The vast majority of businesses supplying temporary workers, who are vital to sectors like education, logistics and care, are ineligible for SSP support -–and a stand-off over who pays could lead to greater economic damage, as work gets shelved.

“we need to keep hiring demand as high as we can. Lowering the cost of labour by reducing employers national insurance contributions, the biggest business tax, is one measure which will help.”

Jonathan geldart, director general of the institute of directors, said extending furlough was the right call and would give directors more confidence about keeping staff through the winter. But he added that the government was “still failing to fix major gaps” in the support. “many self-employed, including small company directors, continue to be left out in the cold. Grant funding through local authorities could help address this issue.

“it’s clear that the government needs to now reinstate and extend insolvency protections to prevent company collapses,” he said, adding that the chancellor should look to marry defensive measures like furlough with policies to get firms on the front foot to encourage job creation and investment through the tax system.”

Job retention bonus – update

Key questions answered about the bonus scheme available to employers

Earlier this month the government published details of the job retention bonus. This bonus was originally announced in july and, like the furlough scheme and its successor, the job support scheme, is aimed at supporting jobs while businesses continue to recover from the impact of the coronavirus.

What is the job retention bonus?

It is a one-off taxable payment of £1000 which is available in respect of every employee you furloughed and who you still employ on 31 january 2021.

Does the size of the bonus vary according to how much the employee is paid?

No. The bonus is a fixed payment of £1000 irrespective of the employee’s earnings.

What are the eligibility criteria for each employee?

First, you must have successfully claimed a grant in relation to the employee through the coronavirus job retention scheme (CJRS). The employee need not have been furloughed for the entire duration of the furlough scheme so long as they have been furloughed at some point.

The employee must have been continuously employed from the end of the last claim that you made for them under the coronavirus job retention scheme and remain employed on 31 january 2021.

Thirdly, (and arguably most importantly) you must pay a salary to the employee of at least £1,560 (gross) in total throughout the forthcoming tax months:

– 6 november 2020 to 5 december 2020

– 6 december 2020 to 5 january 2021

– 6 january to 5 february 2021

You must pay the employee at least one payment of taxable earnings (of any amount) in each of the above tax months.

Useful examples have been provided in government guidance to help businesses decide which employees meet the minimum income threshold. Only payments recorded as taxable pay will count towards the minimum income threshold, so it is worth referring to this resource when considering making a claim:

Find an example of employees and the minimum income threshold for the job retention bonus

We use cookies to collect information about how you use GOV.UK. We use this information to make the website work as well as possible and improve government services. Check an example to help you decide which employees will meet the minimum income threshold for job retention bonus claims. An example to help you decide which employees meet the minimum income threshold.

What if the employee is under notice on 31 january 2021?

You cannot claim a bonus for any employee who has given you notice or who you have served with notice to terminate on or before 31 january 2021. This includes a notice of retirement.

Is the bonus just available for employees?

The bonus is available for individuals who are not employees, such as office holders (for example, directors) and agency workers providing that you claimed a grant for them under the CJRS and the other criteria are met (the earnings criterion and the requirement that they remain working for you on 31 january 2021).

Can I claim the bonus for employees who go onto the new job support scheme?

Yes. You can still claim the bonus for an employee even if you intend to make a claim in respect of them through the new job support scheme that is commencing on 1 november 2020.

Who is the bonus paid to?

The bonus is paid by HMRC and it is paid to the business, not to the individual employees. You do not have to pay the bonus over to the employee.

How and when do I make a claim?

You need to submit a claim for the bonus between 15 february 2021 and 31 march 2021. We do not know yet how employers will make the claim – further guidance is to be provided by 31 january 2021. No claims will be accepted after the deadline of 31 march 2021.

GM card members get $1,000 bonus earnings in january

Employers to receive £1,000 bonus for every furloughed employee returning to work

Full details of the new jobs retention bonus will be released at the end of july

The UK governmen t has announced that employers who bring back furloughed staff and keep them on until the end of january 2021 will be given a £1,000 bonus.

Chancellor rishi sunak said the jobs retention bonus could cost up to £9 billion if all furloughed workers are retained.

He unveiled the measure on wednesday as part of an emergency package of support to help keep people in work as the coronavirus economic crisis hits.

He warned that "hardship lies ahead", but insisted that no-one will be left "without hope".

The furlough scheme winds down in october, and the bonus incentive is an attempt to avoid widespread redundancies as state support is withdrawn.

The UK government will continue to pay 80 per cent of employees wages, capped at £2,500 until october, however, employers will need to start paying national insurance and pension contributions, representing 5 per cent of employment costs, from august 2020.

"while we can't protect every job, one of the most important things we can do to prevent unemployment is to get as many people as possible from furlough back to their jobs," he said.

Under the jobs retention bonus, firms will be paid £1,000 for each employee they bring back from furlough and continuously employ through to january on an average of at least £520 a month.

Payments will be made from february 2021 and further details about the scheme will be published by the end of july.

"we'll pay the bonus for all furloughed employees," he said.

"so if employers bring back all nine million people who have been on furlough, this would be a £9 billion policy to retain people in work.

"our message to business is clear: if you stand by your workers, we will stand by you."

The chancellor told mps that the UK government will do "all we can" to keep people in work.

He said: "we have taken decisive action to protect our economy.

"but people are anxious about losing their jobs, about unemployment rising. We're not just going to accept this.

"people need to know we will do all we can to give everyone the opportunity of good and secure work.

"people need to know that although hardship lies ahead, no-one will be left without hope."

Other measures announced by the chancellor include:

A scheme for firms to be given £2,000 for each new apprentice they hire under the age of 25 and a new bonus of £1,500 for apprentices over that age.

A £2 billion scheme of taxpayer-funded work placements for 16 to 24-year-olds on universal credit and at risk of long-term unemployment.

A £3 billion green package, with grants for home-owners and public buildings to improve energy efficiency.

A £111 million programme of unpaid traineeships combining work experience with training.

Rishi sunak introduces £1,000 bonus per furloughed employee kept on

Employers will be encouraged not to make lay-offs from furlough

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Businesses will be paid a £1,000 bonus for every furloughed employee they bring back to work, the chancellor has announced.

Rishi sunak told the house of commons said the bonus would apply to employees paid enough to reach the lower earnings limit for paying national insurance.

He also unveiled similar incentives for companies to train and hire apprentices.

The announcements are the latest labour market interventions unveiled by the government in a bid to get the economy moving again with the easing of the coronavirus lockdown.

"if you're an employer and you bring back someone who was furloughed - and continuously employ them through to january - we'll pay you a £1,000 bonus per employee," the chancellor told the commons in an emergency statement on wednesday afternoon.

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"its vital people aren't just returning for the sake of it - they need to be doing decent work. So for businesses to get the bonus, the employee must be paid at least £520 on average, in each month from november to the end of january - the equivalent of the lower earnings limit in national insurance."

Mr sunak said the policy would cost £9 billion if all employers took full advantage of the scheme.

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He added: "our message to business is clear: if you stand by your workers, we will stand by you."

On the issue of apprentices, he said: "we’ll pay businesses to hire young apprentices, with a new payment of £2,000; and we’ll introduce a brand-new bonus for businesses to hire apprentices aged 25 and over, with a payment of £1,500."

1 /1 rishi sunak introduces £1,000 bonus per furloughed employee kept on

Rishi sunak introduces £1,000 bonus per furloughed employee kept on

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Employers to receive £1,000 bonus for every furloughed employee returning to work

Mini-budget 2020: the government has introduced a payment to UK employers of £1,000 for each furloughed employee who returns to work and remains with the business through to the end of january 2021.

Employees must be earning above the lower earnings limit of £520 per month between the end of october 2020 (when the furlough scheme ends), and the end of january 2021. Payments will be made from february 2021 and further details about the scheme will be published by the end of july.

The government previously outlined further details regarding the government job retention scheme (GJRS), which will require employers to contribute to employee costs from august 2020, while introducing extra flexibility from 1 july 2020.

The government will continue to pay 80% of employees wages, capped at £2,500 until october 2020, however, employers will need to start paying national insurance and pension contributions, representing 5% of employment costs, from august 2020.

Rishi sunak, chancellor of the exchequer, said: throughout this crisis, I have never been the prisoner of ideology. For me, this has never just been a question of economics, but of values.

“we believe in the nobility of work. We believe in the inspiring power of opportunity. We believe in the british people’s fortitude and endurance.

“our plan has a clear goal: to protect, support and create jobs. It will give businesses the confidence to retain and hire. To create jobs in every part of our country. To give young people a better start. To give people everywhere the opportunity of a fresh start.”

Stephen ratcliffe, partner at baker mckenzie, said: “the jobs retention bonus of £1,000 for each employee brought back to work after having been furloughed is a welcome, and surprising, development. Again, however, urgent guidance is needed to assist employers to understand the key requirements of the scheme, particularly as regards the minimum pay requirements.

“those facing cash flow issues will also need comfort that the bonus will be paid promptly, without unnecessary administration. Both those making use of this scheme, and those who have used and continue to use the furlough scheme, also need reassurance that the government will not later seek to recoup those funds due to minor or inadvertent errors in applying the rules, particularly given the contradictory and uncertain guidance we have seen in respect of the furlough scheme.”

ВЈ1,000 bonus 'may not be enough to protect jobs'

The chancellor's incentive scheme to persuade employers to keep on furloughed staff beyond october may not be enough to stem job losses.

The furlough scheme will be replaced with a one-off ВЈ1,000 reward for each worker retained for three months, rishi sunak said in his summer statement.

But employers' groups are warning more support may be needed to protect jobs.

Trade union leader frances O'grady described the scheme as a "little tinkering around the edges".

The chancellor was widely praised for taking decisive action in march when he introduced the furlough scheme to protect jobs, which has supported nine million employees over the last three months.

But there were concerns that firms would lay off workers as soon as government financial support was withdrawn, creating a "cliff edge" for jobs.

In announcing the new ВЈ1,000 job retention bonus, the chancellor said creating and protecting jobs was the "most urgent challenge" the government faced but said keeping workers on furlough would provide some employees with "false hope".

How does it work?

Employers can receive a one-off payment of ВЈ1,000 for each furloughed employee who remains employed until the end of january 2021

The employee must earn above ВЈ520 per month on average over that period

Payments will be made from february 2021

Further details will be announced by the end of july

However, several organisations have expressed doubts that the scheme will be sufficient to protect the millions of jobs that hang in the balance.

"the chancellor is absolutely right to prioritise jobs," said dame carolyn fairbairn, director general of the confederation of british industry.

She also welcomed the additional measures to create new jobs for young people, traineeships and apprenticeships.

"but prevention is better than cure. Many viable firms are facing maximum jeopardy right now," she added. "with nearly 70% of firms running low on cash, and three in four reporting lack of demand, more immediate direct support for firms, from grants to further business rates relief, is still urgently needed."

Mike cherry, national chairman of the federation of small businesses (FSB) national chairman, also welcomed the "jobs first approach" but questioned whether the retention scheme would work smoothly enough.

"the job retention bonus must be easy to access. We can't have paperwork holding up this vital support.

Frances O'grady, general secretary of the trades union congress said the retention scheme might not provide a sufficient bridge for many firms coming off the furlough scheme.

"A little tweaking around the edges is not going to provide the plan we need for those industries that are critical for this country's future," she said.

The government is offering a carrot if they hang on to workers.

The government says it could cost up to вј9bn - a pretty blunt calculation of 9 million furloughed workers multiplied by ВЈ1,000.

Of course it won't be that simple. The calculation facing business owners is more complicated. Do they want to start paying 5% of employee wage costs next month, then 14% in september and then over 20% in october - followed by three months of full wages to land a prize of ВЈ1,000 during the worst downturn in living memory.

A lot of that will be contingent on demand, which the chancellor has tried to stimulate in the worst affected industries by cutting VAT and offering half price early bird food but it is surely wildly optimistic to think that employers will hang on for that long.

We also learned two other important things today. First that any idea of extending the furlough scheme - as many have called for in some form - appears dead. Second, the government and business are realising just how much they need each other.

So he is dangling his ВЈ1,000 carrot. The question is: is it big enough to save those jobs.

Employers were aware that the furlough scheme was being wound down. Firms were told they would have to pay employees pension and national insurance contributions in august and contribute some money towards staff pay in september and october as part of a flexible furlough scheme.

Critics say at this stage many firms will already have decided to cut jobs rather than take on that extra burden.

The think tank the national institute of economic and social research (NIESR) said the ВЈ1,000 was unlikely to be enough to persuade firms to keep on staff given the difficult economic environment.

"while the aim of the summer statement is laudable, the new measures look to be badly timed and could precipitate a rapid increase in unemployment," said garry young, NIESR deputy director.

"the incentives offered to employers look too small to be effective. Many employers have been topping up the pay of furloughed workers and are expected to bear more of the cost of the scheme from next month. They will be reluctant to do this now they know that the scheme won't be extended."

so, let's see, what we have: find out if you’re eligible to claim the job retention bonus and what you need to do to claim it. You will be able to claim it between 15 february 2021 and 31 march 2021. At 1000 bonus