Saturday, 30 May 2020

Supporting jobs and incomes through Coronavirus

As we slowly start to emerge from this Coronavirus lockdown, I am delighted to see the Chancellor Rishi Sunak announce an extension to the massive economic support package made available by the government. 

This will provide flexibility, with gradual, tapered contributions to help firms restart cautiously and protect jobs, incomes, and the health of our nation. 

Self-Employed Income Support

I know lots of people have been waiting for news on the future of the Self-Employed Income Support Scheme - so it is brilliant news that the scheme will be extended. 

Applications will open in August for a second final grant, paid out in a single monthly installment covering three months' worth of average monthly profits. To maintain fairness alongside the changes to the job retention scheme, the final grant will be 70%, up to a total of £6,570. 

If you are eligible and haven't done so already, you can continue to apply for the first taxable grant until 13th July. There are full details of the scheme and links to an eligibility calculator on my website, which you can see by clicking here. 

Coronavirus Job Retention Scheme

The Chancellor also made key decisions on the future of the Coronavirus Job Retention Scheme to support our economic recovery. The scheme has supported more than 8 million jobs from over a million businesses across the UK. Crucially - throughout the remainder of the scheme, individuals will continue to receive 80% of salary covering the time they are unable to work.

In July - a month earlier than planned - employers can start to use Flexible Furlough. This means you can bring employees back to work for any amount of time, and any shift pattern. Whilst at work, employees should be paid their normal wage, but employers can still claim grants for time spent furloughed. 

In the final three months of the scheme - employers will be asked to start making gradual tapered contributions. 
  • In August, the taxpayer contribution to people's wages will stay at 80%, with employers only being asked to cover National Insurance and employer pension contributions. For the average claim, that accounts for just 5% of employment costs. 
  • In September, employers will be asked to start contributing 10% towards people's salaries - taxpayers will contribute the remaining 70%.
  • And in October, taxpayers will pay 60%, and employers will contribute 20%. 
Then, at the end of October - after eight months of this massive economic intervention of the government stepping in to pay wages - the scheme will close. In order to introduce the new flexible furlough scheme, the old scheme will close to new entrants on July 1st. Employers wanting to place new employees on the scheme will need to do so by June 10th to allow time to complete the minimum furlough period before then. 

Full details of all the support available is available on my Coronavirus website -, and as always, if you can't find the answer you need, please do not hesitate to get in touch.