Rishi Sunak has released a “mini” summer statement.
While there was lots of wishful thinking, and hopes of vouchers to spend, what do we actually get?
Summer Statement
With everything happening, Sunak made clear that there are three phases to the statement.
Phase 1
The first part we’ve already seen in March where we were social distancing, isolating, businesses had to close and the furlough scheme was set up to protect millions of job.
Sunak said in the statement in Parliament that they protected 11m businesses and people with job retention scheme.
Some £20.8 billion was claimed to cover 9.1 million jobs.
Phase 2 – from now
As things are beginning to open up, they want to get the economy growing again.
The economy retracted by 25% in two months – the same increase took 18 years!
There is lots of stuff for employers to retain, grow and take on staff, plus a few things for homeowners and the hospitality sector.
Jobs
The job retention scheme will close on 31st October 2020.
It’s recognised that unemployment will come when furlough ends, but they want to reward employers who bring someone back who was furloughed and keeps them until January (and hopefully beyond). The employer will get £1,000.
Hopefully, this will mean more people get to keep their jobs.
For younger people (under 25s) there is a new kick start scheme. These Kick Starters (this is clearly their favourite new buzz word!) will get into a programme for getting a job. Employers will get paid for new jobs created (25 hours+) for 16-24 year olds.
There will also be payments to employers for traineeships and payment for new employers to create new apprenticeships.
For the Department of Work and Pensions, they will get more work coaches in job centres and other programmes extended for long term unemployed.
Green Homes Grant
Homeowners and landlords can get a voucher of up to £5,000 which will cover 2/3 of the cost to make your home greener.
Lower-income homes will get 100% of up to £10,000.
The Green Home Grants will help in a few ways:
- Your home will be greener – fewer emissions
- Your home will be more energy efficient – lower energy gills
- There will be new green jobs created
Housing
There is an immediate cut on tamp duty.
From today, you will not pay duty on up to £500,000 of the price.
This scheme is temporary and runs until 31 March 2021.
Hospitality and tourism
For pubs, cafe and hotels, the government wants to restart the sectors.
Two things that are going to happen:
VAT cut
Firstly, there will be a VAT for the hospitality and tourism sector.
There’s a VAT cut on food, accommodation and attractions.
From Wednesday, 15 July, VAT will reduce from 20% to 5% through until 12 January 2021.
Eat out to help out discount
Then, there is a new discount to tempt us back to eat out.
Known as the “eat out to help out discount”, we will get money off when we eat out.
Participating restaurants, pubs and cafes will give us 50% off Monday to Wednesday. This will be a discount of up to £10 off per head and includes children.
You’ll be able to get the discount on sit-down meals and non-alcoholic drinks.
Businesses have to register to take part from next week and will claim the money you’re saving back from the government.
But, if you’re got Meerkat Meals, you may find you save more on eating out (and you can get a year of discounts for just £1).
Phase 3
The next phase of the budget will come in a statement in the autumn.
Fingers crossed for that one!!
Naomi knows the burden of living on very little and became debt free by learning from past mistakes and following her own money saving tips and tricks.
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