Following the Prime Minister’s announcement of a national lockdown effective from 5 November, the Coronavirus Job Retention Scheme (CJRS) has been extended and further economic support is being made available.
The main points are summarised below:
Coronavirus Job Retention Scheme
The Coronavirus Job Retention Scheme, due to close on 31 October, will remain open until December.
Employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500. The government’s contribution will be greater than it was in October. It will pay 80% of wages up to the cap, for hours not worked with employers only asked to pay National Insurance Contributions (NICs) and pension contributions, as they did in August.
Importantly, unlike August, flexible furloughing will be allowed in addition to full time furloughing.
Further details of how to claim under the extended scheme are expected shortly, but there will be no gap in eligibility for support between the original CJRS end date of 31 October and this extension period.
We will provide further details as soon as we have them.
The Job Support Scheme, which was scheduled to take effect from Sunday 1 November, has been postponed until the furlough scheme ends.
Business grants
The government has also reiterated that businesses required to close in England due to local or national restrictions will be eligible for grants worth up to £3,000 per month under the Local Restrictions Support Grant.
Eligible businesses will receive grants as follows:
- 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
In addition to the Local Restrictions Support Grant, Local Authorities will be given additional funding to support businesses more broadly.
useful links:
Furlough Scheme extended and further economic support announced – Gov.uk