You are here: Home - Saving & Banking - News -

Businesses urged to claim furlough pay today so staff receive April wages

Written by:
Today is the last day that businesses can claim for furloughed staff if they need to make payments by the end of April.

Figures from the British Chambers of Commerce reveal that 71% of the 678 businesses it is tracking have furloughed staff.

A third of the businesses (30%) have furloughed between 75% and 100% of staff, but as the government’s Coronavirus Job Retention Scheme takes six working days to process, businesses are urged to claim fast.

If they want to give staff pay for the end of April, they should apply to the government scheme today.

The scheme which provides 80% of wages up to a maximum of £2,500 a month for workers went live on Monday and 140,000 businesses applied on launch day alone.

‘Avoid a payday panic’

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “Businesses need to sign up sharpish to the furlough scheme if they’re going to avoid a payday panic.

“It takes six working days to process claims, so any business furloughing staff needs to get their claim in today at the latest, to have the money ready by the end of the month.

“If they miss the deadline, the cash will still show up, and payments will still be backdated to 1 March, but businesses will have to bridge the gap.

“Unfortunately, there’s every sign that an awful lot of them can’t afford to bear these costs for long. The survey found that more than half of companies don’t have enough cash to last three months, so they can’t afford a delay.

“The good news is that HMRC seems to have done a phenomenal job of building a system that enabled 140,000 companies to claim for a million employees on day one alone. Now it needs to deliver on its promise to pay within six working days.”

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.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week