The Chancellor has delivered the Summer 2020 Economic Update to Parliament, setting out various measures designed to stimulate the UK's economic recovery from the COVID-19 pandemic (see Legal update, Summer 2020 Economic Update: key business tax announcements).

Of interest to pensions practitioners will be the announcement of a new "kickstart" job creation scheme aimed at those aged between 16 and 24 who are on Universal Credit and at risk of long-term unemployment. For each new placement, the government will fund 25 hours' work a week at the applicable National Minimum Wage, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.

The Chancellor also confirmed that the furlough scheme will finish at the end of October 2020. For more on the issues for pension scheme trustees and employers related to COVID-19, see Practice note, COVID-19: issues for pension schemes.

Sources: GOV.UK: Chancellor's Plan for Jobs to help the UK's recovery (8 July 2020) and HM Treasury: Plan for Jobs (July 2020).