Furlough scheme extended and further support announced

People and businesses across the UK are being provided with additional financial support as part of the government’s plan for the next phase of its response to the coronavirus outbreak, the Prime Minister announced over the weekend.

Speaking to the country on Saturday, PM Boris Johnson said the government’s Coronavirus Job Retention Scheme (CJRS) will remain open until December, with employees receiving 80 per cent of their current salary for hours not worked, up to a maximum of £2,500.

In addition, business premises forced to close in England are to receive grants worth up to £3,000 per month under the Local Restrictions Support Grant. Also, £1.1 billion is being given to local authorities for one-off payments to enable them to support businesses more broadly.

"Over the past eight months of this crisis we have helped millions of people to continue to provide for their families. But now – along with many other countries around the world – we face a tough winter ahead," said Chancellor Rishi Sunak.

"I have always said that we will do whatever it takes as the situation evolves. Now, as restrictions get tougher, we are taking steps to provide further financial support to protect jobs and businesses. These changes will provide a vital safety net for people across the UK."

Job Retention Scheme

Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme, which will continue for a further month.

Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time, and will only be asked to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5 per cent of total employment costs.

The Job Support Scheme, which was scheduled to come in on Sunday, 1 November, has been postponed until the furlough scheme ends.

Mortgage Holidays

Borrowers who have been impacted by coronavirus and have not yet had a mortgage payment holiday will be entitled to a six month holiday, and those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.

Business Grants

Businesses required to close in England due to local or national restrictions will be eligible for the following:

• For properties with a rateable value of £15,000 or under, grants to be £1,334 per month, or £667 per two weeks;
• For properties with a rateable value of between £15,000-£51,000 grants to be £2,000 per month, or £1,000 per two weeks;
• For properties with a rateable value of £51,000 or over grants to be £3,000 per month, or £1,500 per two weeks.