Further economic support announced by the Government
This weekend’s lockdown announcement from the Government has, we are sure, left you with many questions as to how your business will be supported during this time. The Government has provided details of the economic assistance that will be available during this further lockdown period which we have summarised below.
We understand that these are tumultuous times and we are here to help. Whether that be government measures, restructuring, grants or time to pay arrangements, we urge you to get in touch if your business needs assistance.
Reinstatement of the Coronavirus Job Retention Scheme (CJRS)
The ‘flexible’ furlough scheme which came into force on 1st July 2020 was due to expire on the 31st October, however this has now been extended. Whilst no specific end date has been confirmed, the government website states that it will be extended until at least December. We will keep you updated as further details are released.
Whilst the new lockdown measures do not come into force until Thursday 5th November 2020, employers will be able to claim for furlough from the 1st November.
Employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500. The cost for employers of retaining workers has reduced in comparison to the previous flexible furlough measures which ceased on the 31st October. Making this extension to furlough more generous for employers than its previous incarnation.
Businesses will also have the flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time where they will be asked to cover National Insurance and employer pension contributions only, which accounts for just 5% of total employment costs.
The Job Support Scheme
This was scheduled to start on 1st November and has been postponed until the furlough scheme ends.
Business grants for businesses forced to close.
Businesses required to close in England due to local or national restrictions will be eligible for the following:
- For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
- For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
- For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.
Mortgage payment holidays have not ended as planned on the 1st November. Borrowers who have been impacted by the pandemic and have not yet had a mortgage payment holiday will be entitled to a six month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.
If we can be of assistance in any way, then please do get in touch. Email email@example.com and one of the team will be in touch.
The information was correct at time of publishing but may now be out of date.