5 November 2020, London, United Kingdom
The Furlough Scheme will remain open until 31 March 2021, said the government today. The policy will be reviewed again in January to decide whether economic circumstances are improving and employers can contribute more. For more details follow the link Coronavirus Job Retention Scheme.
3 November 2020
With a second national lockdown starting this week, the good news is that the Job Retention Scheme or the Furlough Scheme has been extended for another month and applies to the whole of the UK. Other financial support measures have been also announced in response to the economic challenges caused by the pandemic.
Job Retention Scheme
The Job Retention Scheme will remain open until December.
Flexible furloughing will be allowed in addition to full-time furloughing. The employers have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time and are required to pay the NI and pension costs.
All employees who have been on an employer’s PAYE payroll before midnight on 30th October 2020 are eligible regardless of the type of their employment contract.
Employees on furlough will receive 80% of their current salary for hours not worked, and up to a maximum of £2,500. Employers will pay employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work.
The extension applies to small, medium or large private business as well as organisations from the charitable or non-profit sector.
Employers with more than 250 employees will be required to demonstrate that their turnover has been impacted by COVID-19. Whilst taking part in the Job Retention Scheme, large employers may not issue redundancy notices to employees or make any capital distributions to shareholders.
New Business Grants Available
Businesses whose premises are forced to close completely will receive grants worth up to £3,000 per month. Forced closure has been announced for pubs, bars and restaurants, personal care facilities, outdoor and indoor leisure and sports facilities, as well as entertainment, art and cultural event venues.
The government has made available £1.1bn to Local Authorities who will continue to support the local business by distributing £20 per head for one-off payments.
Financial Support for People and Households
Following the announcement of the latest Government restrictions in response to the coronavirus outbreak, the UK Financial Conduct Authority (FCA) has proposed a new package of financial support measures to provide further financial relief. Mortgage, loan and credit card borrowers can seek repayment holidays extension for another six months, said the FCA.
The UK government measures will help many businesses and households to bridge across the economic disruption and minimise the damages.
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