With a second national lockdown commencing on Thursday 5th November, the chancellor Rishi Sunak has announced an extension to the Coronavirus Job Retention Scheme (CJRS). The scheme will now run until December when it is replaced by the Job Support Scheme.
Eligibility – CJRS Version 3
Unlike the second iteration of the CJRS, all employers will now be able to furlough any staff who were on payroll on 30 October; there is no requirement to have been furloughed previously. This will enable more businesses across the UK to receive support.
How much can you claim?
The CJRS has become increasingly more expensive for employers over recent months. The scheme is now being rolled back to its August variation, in which the government covered 80% of furloughed staff’s wages (up to £2,500) and the employer only covered National Insurance and pension contributions. Since July, employers have been able to bring back employees part-time, and furlough them for the rest. This will continue.
Other support currently available
Under the Local Restrictions Support Grant system, businesses that have been legally forced to close will be eligible for a grant to cover rent and rates, dependant on the rateable value of the business premises 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.
Mortgage payment holidays have also been extended. Borrowers who have been impacted by Covid-19 will be eligible for up to six months payment-free.
The third Self-Employment Income Support Scheme grant covering November, December and January will become available over the coming weeks. The grant is currently due to cover 40% of average monthly trading profits, but no dates for claiming the funding have been announced. No updates to address the disparity between funding available for employed and self-employed persons has been given yet.
Get in touch
Boris Johnson acknowledged during his national address that he was “under no illusions” about the stresses that businesses will experience this month. Please get in touch if you are unclear about any potential Covid-19 funding by emailing email@example.com or calling 01392 241228.