You are here: Home - Household Bills - News -

Furlough scheme extended till March and self-employed grant boosted again

0
Written by:
05/11/2020
The government has announced a five-month extension of the furlough scheme while the self-employed will be eligible for a third grant worth up to £7,500.

The original furlough scheme was due to end in October but it was extended to cover the second lockdown period in England through to 2 December.

However, chancellor Rishi Sunak announced that furlough – the Coronavirus Job Retention Scheme (CJRS) – will now run until the end of March 2021. It will provide 80% of wages for hours not worked, up to a cap of £2,500 a month.

Meanwhile, self-employed workers who were expecting to receive a third grant of 55% of trading profits for November to January (capped at £5,160) will now be eligible to receive 80% of trading profits, capped at £7,500 for the quarter.

This is up from the original Self-employment Income Support Grant (SEISS) extension which was going to cover just 20% of profits up to a maximum of £1,875 before the announcement of a second lockdown in England.

Sunak said: “I’ve always said I would do whatever it takes to protect jobs and livelihoods across the UK and that has meant adapting our support as the path of the virus has changed.

“It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support.

“Extending furlough and increasing our support for the self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter.”

As part of the furlough extension, Sunak confirmed there are currently no employer contributions to wages for hours not worked. Employers will only be asked to cover National Insurance and pension contributions for hours not worked.

For an average claim, this amounts to 5% of total employment costs or £70 per employee per month.

The Treasury added that the CJRS will be reviewed again in January to see whether economic improvements mean employers may need to contribute more towards employees’ pay.

This also means that the £1,000 Jobs Retention Bonus will now not be paid in February as it was set to encourage employers to keep people in work until the end of January.

Since the launch of the financial support schemes, over nine million jobs across the UK have been protected while self-employed people have already received over £13bn. Despite the extension, the three million or so excluded self-employed people will again miss out on the funding.

The chancellor also announced an increase to the upfront guarantee of funding for the devolved administrations from £14bn to £16bn.

This is on top of cash grants of up to £3,000 per month for businesses which are closed worth more than £1bn every month; £1.1bn is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses; plans to extend existing government-backed loan schemes and the Future Fund to the end of January, and an ability to top-up Bounce Back Loans. Mortgage payment holidays for homeowners has also been announced.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Sainsbury’s warns 3,500 jobs could go as it plans major restructure

Sainsbury’s has announced 3,500 jobs are at risk as it looks to close its meat, fish and deli counters as...

Close