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4th November 2020

Furlough Scheme Extended

The UK government announced this week they have extended the Coronavirus Job Retention Scheme for one month, with employees receiving 80% of their current wages for hours not worked. The extension will stay open until December with maximum payments of £2500 per month. The cost for employers to retain workers is reduced greatly compared to the current scheme which was only paying 60% of wages.

There are also new provisions for businesses that are forced to close will receive grants up to £3000 per month under the new Local Restrictions Support Grant. Local authorities will also receive assistance to enable business support. Mortgage holidays that were set to end 1 November have also been extended so that people impacted by COVID are entitled to a 6-month mortgage holiday or can extend their mortgage holiday to 6 months without affecting their credit files.

Employers will be able to bring furloughed employees back to work on a part-time basis, and only need to pay National Insurance and employer pension contributions which account for 5% of employment costs.

Eligibility for businesses required to close due to new local restrictions are based on the rateable value of each business as follows:

  • £15K or under, grants are £1334 per month

  • £15K - £51K, grants are £2000 per month

  • £51K or over, grants are £3000 per month

The UK government is providing unprecedented emergency support during this ongoing crisis, protecting more than 9 million jobs and providing more than £13 billion in support.

If you need help or support with your payroll to manage the new furlough changes, talk to us. Our CIPP-certified team and easy-to-use software platform can simplify the complicated changes. Click here to learn more

Need help to understand what solution is best for your business?

Speak with our expert team today on 028 2764 1060

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