Budget 2020: Firms to get national insurance tax break in bid to get Army veterans into work
2 min read
Companies are set to benefit from a national insurance cut in a bid to boost employment among recent Armed Forces veterans, Chancellor Rishi Sunak has announced.
Under the plan, firms will be handed an exemption from paying national insurance contributions for ex-armed forces staff in their first year of work.
The move, expected to be confirmed at Wednesday's Budget, is aimed at boosting employment rates for the 15,000 veterans who leave the armed forces each year.
Announcing the plans, the Chancellor said the relief would see firms saving an average £2,000 in tax for ex-service personnel on a £25,000 salary.
"The UK owes all ex-servicemen and women a tremendous debt for serving our country and keeping us safe - so it is only right we help them in every possible way," he said.
"My Budget will deliver on the promises we've made to veterans - and to the rest of the British people."
Further measures set to be included in the set-piece fiscal event include a new £10m fund to help provide better mental health services for veterans.
The cash, which will be distributed by the Armed Forces Covenant Trust, will allow organisations across the UK working with ex-forces personnel to apply for cash grants.
Defence minister Johnny Mercer said: "I'm determined that this Government will continue to do all we can to assist veterans, especially when it comes to their transition back into civilian life.
"These latest government measures will help service leavers secure employment and ensure greater support for those with mental health needs."
Meanwhile, a further £3m will be committed to help support the construction of a memorial to the Spitfire aircraft in Southampton.
The permanent monument is set to be unveiled as part of the 80th anniversary of the Battle of Britain later this year.
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