On 31st October 2020 the Prime Minister announced new financial support measures for the next period of lockdown. New restrictions were also announced in an attempt to curb the spread of Covid-19. These new restrictions were voted in by Parliament on Wednesday 4th November and are now in force until at least 2nd December.
In response to the effect that restrictions will have on business employers and employees, the Coronavirus Job Retention Scheme (CJRS) (known as the furlough scheme) was extended to support the national lockdown. Detail on the scheme now in place are here,
Then on 5th November, Chancellor Mr Sunak announced a further update. The furlough scheme was extended across the UK until the end of March 2021.
Mr Sunak said the scheme will pay up to 80% of a person’s wage up to a maximum of £2,500 a month. He told the Commons that the government will review the policy in January.
We previously wrote about the Job Support Scheme which was due to begin on 1st November 2020, this has been postponed until the furlough scheme ends.
Financial support for employers includes:
- Employees will receive 80% of their current salary for hours not worked up to a maximum of £2500 per month.
- Employers will have to contribute to the cost of National Insurance and Employer Pension which is roughly 5% (this was as that being paid in August).
- Flexible furlough will still be allowed as previously possible.
Local and national restrictions will require some businesses to close in England – those affected will be eligible for Business Grants:
- £1,334 per month, or £667 per two weeks – for properties with a rateable up to £15k
- £2,000 per month, or £1,000 per two weeks – for properties with a rateable value of £15k-£51k
- £3,000 per month, or £1,500 per two weeks – for properties with a rateable value of £51k or more
This article was written on the 5th November 2020. Things are changing frequently at the time of writing, and further updates/guidance on this scheme are expected in the coming days and weeks.
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