Furlough will continue into November to support businesses through new national lockdown
So, as Saturday progressed, what became the worst-kept secret was eventually announced by the Prime Minister on Saturday evening. With the national lockdown measures confirmed, including the forced closure of non-essential businesses from 5 November, the question turned to what financial support will be available?
The government announced that the Coronavirus Job Retention Scheme (aka the furlough scheme) would continue into November, just hours before it was due to end.
So, which level of furlough scheme are we on?
- We are back to the maximum £2,500 benefit and 80% of wages being funded by the government.
- The employer will need to fund Employer’s National Insurance and pension contributions.
- Flexible furlough will still apply.
- Employees will need to have been on a payroll RTI submission before 23.59 on 30 October.
- You don’t need to have used the furlough scheme previously, in order to use it this time and you can furlough employees whether or not they have been furloughed in the past.
- The Job Support Scheme – which was scheduled to come in to force yesterday (1 November) – will now be postponed until the furlough scheme ends.
We don’t yet know the claims process for the new furlough, whether it will be as before or a new process. Further details are due to be announced shortly.
In addition, as announced last week for business who are forced to close, there is £3,000 of Local Restriction Support Grant available – this is from your Local Authority. There are also business rates grants available, which vary depending on the rateable value of the property. These range from £667 per two weeks, to £1,500 per two weeks.
On a personal level, mortgage holidays will be extended also – we are expecting further details to be released later today.
At the time of writing, the HMRC website isn’t updated yet, still saying the Job Retention Scheme will close at 31 October. However, the press releases from the government have confirmed that the scheme will be open until 2 December, in line with the new national lockdown time frames set out by the Prime Minister.
If there are any further announcements from the Chancellor we will, of course, bring those to you as soon as they happen.
As always, the team at Inspire is here to support you. Please do get in touch if we can help you.