Nigel Morris, tax director at MHA MacIntyre Hudson, says many employers will still be priced out of the government’s job creation scheme.
“The Kickstart package allows young people the opportunity to gain skills and experience in the workplace, but not without considerable commitment from employers, who already face significant challenges.
“The Chancellor’s aim is to give businesses the confidence to retain and hire, but with business activity and revenues hard hit across so many sectors, employers will struggle to meet national insurance costs, or to top up wages beyond the 25 hours covered. They will also find it difficult to commit to training costs, and they lack the resource to divert trained staff to support new employees.
“Given the six-month lifespan of this support, additional measures are required to prevent another cliff-edge deadline. While it may provide a short-term solution, the package still leaves many workers without support as the furlough scheme ends. There is also a risk that unscrupulous employers will exploit young workers and the opportunity to take on cheap labour.”