The Chancellor, has today, confirmed further support for businesses and individuals over the winter months amidst the ongoing coronavirus pandemic.
Five-month furlough scheme extension
Following the announcement less than a week ago, that the furlough scheme would be extended into November, the Chancellor has now confirmed that it will run until 31 March 2021.
Full details of the extension are yet to be announced for December onwards, but we understand that it will initially be on the same terms as for November claims. Employees will, therefore, receive 80% of their salary (capped at £2,500 per month) for hours not worked. The employer will only be required to cover employer’s NIC and pension contributions.
The Government has advised that they will review the position in January and, depending on economic circumstances at that time, may look to increase employer contributions.
The deadline for submitting claims will be much shorter, however, with just 14 days from the end of the relevant calendar month to file. For example, November claims will need to be submitted by 14 December 2020.
For full details of the updates read our article here.
Job retention bonus
The job retention bonus, due to be paid in February, will now no longer be paid as the furlough scheme has been extended beyond this date. The Government has indicated that an alternative job retention incentive will be introduced for some time after the furlough scheme concludes.
Self-employed income support scheme
The third grant under the self-employed income support scheme will now increase, for the third time, to 80% of average monthly trading profits. This will result in a maximum total claim for the three-month period from 1 November 2020 to 31 January 2021 of £7,500.
It is still anticipated that it will be possible to make a claim for the third grant from 30 November 2020.