UPDATE - UK Unveils $2.5Bln Scheme To Create Jobs For Young People Hit By Pandemic

MOSCOW (UrduPoint News / Sputnik - 08th July, 2020) The UK government is launching a 2 billion Pounds ($2.5 billion) program to create new jobs for young people hit hard by the COVID-19 pandemic, Chancellor Rishi Sunak said on Wednesday.

In a speech to the parliament, Sunak unveiled the second part of the national three-phase plan to spur the economic recovery. The chancellor made a focus on employment, noting that people under 25 are "two and a half times as likely to work in a sector that has been closed." He stressed that the United Kingdom "cannot lose this generation," and is announcing the Kickstart Scheme.

"The Kickstart Scheme will directly pay employers to create new jobs for any 16 to 24-year-old at risk of long-term unemployment ... These will be decent jobs - with a minimum of 25 hours per week paid at least the National Minimum Wage. And they will be good quality jobs - with employers providing Kickstarters with training and support to find a permanent job," Sunak said.

If employers meet these conditions, the government will pay young people's wages for six months, plus an amount to cover overheads, according to the chancellor.

Employers will be able to apply for this scheme starting next month and welcome the first "kickstarters" in their new jobs in the fall.

Another 9 billion pounds will be set aside for businesses that hold on to their employees, with companies set to receive 1,000 pounds for every employee they do not fire.

The government will allocate 3 billion pounds to remake public and residential buildings less carbon-intensive and give families vouchers between 5,000 and 10,000� pounds to insulate their homes which would drive down heating costs.

Other measures include a tax holiday on property purchases below 500,000 pounds, tax reduction on the hospitality sector and a discount for visitors to restaurants, cafes and other catering facilities.

At the same time, Sunak announces the government will be gradually winding down the furlough program. The system was devised in the immediate aftermath of the shuttering where the government vowed to pay up to 80 percent of employees' salaries.

The сhancellor said this is the second of what is anticipated to be a three-phase economic recovery plan.