Covid-19 Update: Furlough Replacement Scheme
The Chancellor has announced the successor to the furlough scheme which will come into operation on 1 November 2020. To be known as the Job Support Scheme it will run for 6 months.
The company will continue to pay its employee for time worked, but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.
The Government will pay a third of hours not worked up to a cap, with the employer also contributing a third. This will ensure employees earn a minimum of 77% of their normal wages, where the Government contribution has not been capped.
Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
More information is included in the factsheet available here.
Economic Resilience Fund
In a press conference today, Economy Minister Ken Skates outlined additional support as follows:
- £80 million of business development grants available to micro businesses, SME’s and large businesses.
- Micro businesses (employing between 1 and 9 people) will be able to apply for up to £10,000 on the condition they match this with their own investment of at least 10%.
- SMEs (employing between 10 and 249 people) will be able to apply for up to £150,000 on the condition they match this with their own investment of at least 10% for small business (1 to 49 staff) and 20% for medium sized (50 to 249) business.
- Large businesses (employing 250+ people) will be able to apply for up to £200,000 on the condition they match this with their own investment of at least 50%.
- An additional £60 million will be allocated to support businesses impacted by local lockdown restrictions.
The Eligibility Checker for companies to find out if they can access funding from the third phase of the ERF will be live during week commencing 5 October.
Other Covid-19 Articles:
- Covid-19 Support Video Guides
- COVID-19 – Information and Updates
- Covid-19 Update: Furlough Replacement Scheme
- Self-Assessment: Second payment on account 2019/2020
- Job Retention Scheme and VAT Update
- Covid-19 Update
- Economic Resilience Fund Update
- Self-Employment Income Support
- Covid-19 Where are we now?
- COVID-19 Statement
- COVID-19 – Update 2
- COVID-19 – Update 3
- COVID-19 – Update 4
- COVID-19 – Update 5
- COVID-19 – Update 6
- COVID-19 – Update – 7 – Job Retention Scheme
- Covid-19 – Update – Economic Resilience Fund
- COVID-19 – Update – Owner Managed Companies
- COVID-19 – Update – Support for Welsh Businesses