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 Chancellor Rishi Sunak has said:
"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. 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."
The Coronavirus Furlough Scheme
The Coronavirus Job Retention Scheme has now been extended until the end of March with employees receiving 80% of their current salary for hours not worked, up to £2,500.
The Prime Minister said on Saturday (31 October) the government’s Coronavirus Job Retention Scheme (CJRS) - also known as the furlough scheme - will remain open until the end of March, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the current scheme, which ends today. This means the extended furlough scheme is more generous for employers than it was in October.
The Job Support Scheme, which was scheduled to come in on Sunday 1st November, has been scrapped due to the extension of the furlough scheme.
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, £1.1bn 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.
You can find out more detail here
Self Employed Income Support Scheme
The support to the self-employed is increasing from 40% of trading profits to 80% for November up to a maximum of £7,500.
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 increase means over £4.5bn of support for the self-employed between November and January.
You can find out more here
Bounce back loan and CBILS loan application deadlines have been extended to 31 January 2021
Mortgage payment holidays will no longer end today. 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.
If you have any queries about this, please get in touch with the team at Oldfield Advisory, who will be happy to help!