Coronavirus Job Retention Scheme Extension
The UK Government has made several announcements over the past few days including relaxing of the lockdown restrictions, opening of non-essential shops, resumption of sporting activities, and updates on financial measures. Daily updates and publications on these changes continue to be provided by the UK Government.
Updates on financial measures were announced for the Coronavirus Job Retention Scheme and the Local Authority Discretionary Grants Fund.
Useful links to UK Government guidance and our previous updates can be found at the end of this article.
Coronavirus Job Retention Scheme
It was announced previously that the Coronavirus Job Retention Scheme was to be extended to 31 October 2020. Details of how this extension will work have now been released. It is important to note that the scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June. This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Claims in respect of the period to 30 June must be made by 31 July 2020.
After 30 June, the Coronavirus Job Retention Scheme becomes flexible to assist bringing employees back to work. Changes to the scheme are being staged between July and October.
- July – the grant amount remains the same, however employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim the grant for their normal hours not worked. The cap will remain at £2,500 per employee for the month.
- August – the grant amount will only cover the gross wage cost. Employers will have to meet the National Insurance and pension contribution costs. The cap will remain at £2,500 per employee for the month.
- September – the grant amount will fall from 80% to 70% of salary, with the 10% change being met by the employer. The cap will become £2,187.50 per employee for the month.
- October – the grant amount will fall by another 10% to 60% of salary, with the 20% change now being met by the employer. The cap will become £1,875 per employee for the month.
Full details of the extension are yet to be released by the UK Government.
UK Government guidance on the Coronavirus Job Retention Scheme can be found here.
The Chancellor’s press release on the extension to the Coronavirus Job Retention Scheme can be found here.
Local Authority Discretionary Grants Fund
UK Government has previously announced the Local Authority Discretionary Grants Fund. This fund was launched to provide funding to those businesses that run business premises but are not subject to business rates and so are not eligible for other grants available. As the name of the fund suggests, grants to be paid to businesses are at the discretion of local authorities and we have been waiting on details of the grants to be announced by local authorities. UK Government have asked local authorities to prioritise businesses such as small businesses in shared office space, regular market traders, bed and breakfasts paying council tax and charity properties getting charitable business rates relief.
Kettering Borough Council and Corby Borough Council launch their schemes today (1 June 2020).
IMPORTANT – applications for grants from Kettering Borough Council must be made on or before 14 June. Corby Borough Council have not publicised an end-date to the claim. We are advising all businesses with fixed property costs that have not received any other property relating funding to apply for these grants from their Local Authority as soon as possible.
Kettering Borough Council new release on the Local Authority Discretionary Grants Fund can be found here.
Kettering Borough Council guidance on the Local Authority Discretionary Grants Fund can be found here.
Applications for the Kettering Borough Council Local Authority Discretionary Grants Fund can be made here.
Corby Borough Council guidance on the Local Authority Discretionary Grants Fund can be found here.
Applications for the Corby Borough Council Local Authority Discretionary Grants Fund can be made here.
Businesses not in the Kettering or Corby area should refer to their Local Authority website. You can find the website by entering your business postcode here.
Links
Our previous updates can be found on Facebook and LinkedIn or on our website blog.
A UK Government business support website can be found here. It contains guidance on all Coronavirus financial measures and business advice.
A UK Government general COVID-19 support website can be found here. It contains guidance on all matters pertaining to the Coronavirus.
