Coronavirus Job Retention Scheme recent changes

From 1 July 2020, UK businesses will be given the flexibility to bring previously furloughed employees back part time. This is a month earlier than previously announced to help support people back to work. From August 2020, the level of the grant will be slowly tapered to reflect that people will be returning to work.

• In June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions for the hours the employee doesn’t work. Employers will have to pay employees for the hours they work.

 

• In August, the government will pay 80% of wages up to a cap of £2,500 and employers will pay ER NICs and pension contributions for the hours the employee does not work – 5% of average gross employment costs of those currently furloughed.

 

• In September, the government will pay 70% of wages up to a cap of £2,190 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.

 

• In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.

The scheme will close to new entrants on 30 June, with the last three-week furloughs before that point commencing on 10 June for new entrants. See further details in the updated FAQs on our Coronavirus Hub and the CJRS factsheet and share with your members.

Self-Employment Income Support Scheme (SEISS) extended

SEISS will be extended, with eligible individuals able to claim a second and final grant in August. The eligibility criteria remains the same as for the first grant, and individuals will need to confirm that their business has been adversely affected by Coronavirus.

The grant will be worth 70% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total. This is in line with changes to the Coronavirus Job Retention Scheme as the economy reopens.

The first SEISS grant, which opened for applications on 13 May, will close to new applications on 13 July. Eligible individuals will be able to make their claim for the first grant any time until this date, and those eligible will have the money paid into their bank account within six working days of completing a claim.

Review the factsheet on SEISS which may be helpful in communicating the changes to your members. Further guidance on the second grant will be published on Friday 12 June.

BCC responds to changes to Job Retention Scheme and support for the self-employed

Take a look back at BCC’s response to Job Retention Scheme changes and support for the self-employed announced by the Chancellor of the Exchequer, Rishi Sunak MP last Friday 29 May.

Apply for the Coronavirus Local Authority Discretionary Grants Fund

Small and micro businesses in England with fixed property costs that are not eligible for the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund, may be eligible for the Discretionary Grants Scheme. Your local council will run an application process and decide whether to offer you a grant. Take a look at more information and share with your members.

OTHER NEWS:

Labour party invitation to Hospitality Industry Policy Consultation roundtable

UK Chambers and your members are invited to join an upcoming virtual roundtable hosted by the Labour Party on Friday 5 June at 11.00am. The Q&A webinar will explore the challenges facing hospitality firms of all sizes across the UK and look at ways policymakers can ensure it recovers and thrives in the long term. Register for the event and share the details with your members in the hospitality industry.

Food Standards Agency (FSA) checklist for UK food businesses

The FSA has developed a useful checklist to help food businesses in the UK re-open and operate safely during Coronavirus. The checklist covers:

• business activities;
• safety management and waste;
• food areas and surfaces;
• hand washing and cleanliness;
• equipment;
• raw materials; and
• allergen information.

UK Chambers should review the checklist and promote with your members as relevant.