Individuals and businesses across the UK are being provided with additional financial support as part of the government’s plan for the next phase of its response to the Coronavirus outbreak, the Prime Minister has announced.
The Coronavirus Job Retention Scheme (CJRS) – also known as the Furlough scheme – will now remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the previous scheme, which ended last week. This means the extended furlough scheme is more generous for employers than it was in October.
In addition, business premises forced to close in England are to receive grants worth up to £3,000 per month under the Local Restrictions Support Grant. Also, £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.
To give homeowners peace of mind too, mortgage holidays will also no longer end today.
Job Retention Scheme
Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme, which will continue for a further month.
Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time, and will only be asked to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5% of total employment costs.
The Job Support Scheme, which was scheduled to go live yesterday, has been postponed until the furlough scheme ends.
Additional guidance will be set out shortly.
Mortgage Holidays
Mortgage payment holidays will no longer end. Borrowers who have been impacted by Coronavirus 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.
The Financial Conduct Authority will announce further information later today.
Business Grants
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.
Additional details to follow and we will continue to keep you updated as developments are announced.
If you require any assistance relating to the above announcements or would like to know more about how we can help you and your business, please contact your usual Beavis Morgan Client Partner or email info@beavismorgan.com.
For further information about the Government measures to protect individuals and businesses, visit our COVID-19: Support for UK businesses hub.