In anticipation of the tough winter ahead the Prime Minister announced further support for business which mainly revolves around Coronavirus Job Retention Scheme (CJRS) and other grants.
Coronavirus Job Retention Scheme
The Coronavirus Job Retention Scheme (CJRS) commonly known as the furlough scheme will be extended until December with employees receiving up to 80% of their salary for hours not worked. The exact date when the extended scheme will finish has not yet been confirmed.
https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-
The furlough scheme had been wound down over the last few months, with Government support reduced to 70% of wages in September and 60% in October before the scheme was due to come to an end on 31 October 2020. It had been announced that the CJRS would be replaced by the Job Support Scheme (JSS), a scheme that would have topped up wages for people returning to work on reduced hours. The introduction of the JSS has now been put on hold until the CJRS extension ends.
The main feature of the CJRS extension announced to date is set out below:
Mortgage holidays:
It has also been confirmed that mortgage payment holidays will no longer end as planned on 31 October 2020. 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.
Cash grants:
It had been previously announced that businesses in England that are forced to shut as a result of a lockdown will be eligible for grants of up to £3,000 per month payable every two weeks. Businesses will be eligible to claim after two weeks of closure.
The amount businesses will be able to claim from their local authority depends on their rateable value:
Further support for businesses:
The government is providing an additional £1.1bn to Local Authorities in England, distributed on the basis of £20 per head. These payments are designed to help Local Authorities to support businesses more broadly.
Self Employed Income Support Scheme Extension (SEISS):
No further changes to support measures for the self-employed have been announced. The most recent announcement confirmed that the grants for the self-employed will be extended based on 40% of previous qualifying earnings.
The initial lump sum will cover three months of profits from 1 November 2020 calculated as 40% of average monthly profits, up to a maximum total of £3,750. The extended scheme will apply for 6 months from 1 November 2020 with an initial taxable grant made available to those who continue to trade and meet the eligibility requirements.
An additional second grant will be made available from 1 February 2021 to 30 April 2021. The level of this second grant amount is subject to review and will be set in due course.
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