Government extends Furlough to March and increases self-employed support package
A five-month extension of the furlough scheme into Spring 2021 and support the self-employed with a third grant was announced on 5th November.
The Coronavirus Job Retention Scheme (CJRS) will now run until the end of March with employees receiving 80% of their current salary for hours not worked.
Similarly, support through the Self-Employment Income Support Scheme will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.
The SEISS grants will also be paid faster than previously planned, with the claims window opening at the end of November rather than the middle of December.
The third grant will cover a 3 month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant calculated at 80% of 3 months average monthly trading profits, paid out in a single instalment and capped at £7,500 in total. This is an increase from the previously announced amount of 55%.
The Government has already announced that there will be a fourth grant covering February 2021 to April 2021. The Government will set out further details, including the level, of the fourth grant in due course.
The grants are taxable income and also subject to National Insurance contributions.
On top of this, there are:
- cash grants of up to £3,000 per month for businesses which are closed
- £1.1 billion is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly
- 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
- an extension to the mortgage payment holiday for homeowners
- up to £500 million of funding for councils to support the local public health response.
- cash grants of up to £3000 per month for businesses which are closed - Those businesses affected 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.