Posted on 10th November, 2020

Furlough scheme extended until March

The Government announced additional support by extending the furlough scheme until the end of March. This move should help protect millions of jobs and give businesses and people across the UK certainty over the winter months. 

Here’s the summary of the changes

 

  • The furlough scheme will now be extended until the end of March.
  • The next self-employed income support grant will also increase from 55% to 80% of average profits – up to £7,500.
  • The Coronavirus Job Retention Scheme (CJRS) will now run until the end of March with employees receiving 80% of their current salary for hours not worked.
  • Similarly, support for millions more workers through the Self-Employment Income Support Scheme (SEISS) will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.

The Chancellor also announced today an increase in the upfront guarantee of funding for the devolved administrations from £14 billion to £16 billion. This uplift will continue to support workers, business and individuals in Scotland, Wales and Northern Ireland.

The furlough scheme was initially extended until 2 December. But the government is now going further so that support can be put in place for long enough to help businesses recover and get back on their feet – as well as giving them the certainty they need in coming months. Evidence from the first lockdown showed that the economic effects are much longer lasting for businesses than the duration of restrictions.

There are currently no employer contribution to wages for hours not worked. Employers will only be asked to cover National Insurance and employer pension contributions for hours not worked. For an average claim, this accounts for just 5% of total employment costs or £70 per employee per month. The CJRS extension will be reviewed in January to examine whether the economic circumstances are improving enough for employers to be asked to increase contributions.

On top of this, the Government has also announced

  • Cash grants of up to £3,000 per month for businesses which are closed worth more than £1 billion every month.
  • £1.1 billion is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly.
  • Plans to extend existing government-backed loan schemes and the Future Fund to the end of January, and an ability to top-up Bounce Back Loans.
  • An extension to the mortgage payment holiday for homeowners.
  • Up to £500 million of funding for councils to support the local public health response.

Source: https://www.gov.uk/government/news/government-extends-furlough-to-march-and-increases-self-employed-support

 

Share this article;

Clients We Work With

News & Announcements

Amidst the chaos of 2020, demand for food banks has risen sharply. The Trussell Trust has estimated a 61% increase in demand over the winter months; handing out 6 emergency food parcels per minute. Here...

Read More
Posted on 1st December, 2020

Newcastle in Tier 3 from 2 December

Newcastle upon Tyne has been placed in Tier 3 ‘very High alert’ after recent review of all areas by the Government.  Here’s what you can and cannot do until 23 December when new ‘Christmas period’...

Read More

Subscribe

If you’d like us to send you our news, announcements and latest job vacancies enter your details and we’ll keep in touch!