The Coronavirus Job Retention Scheme and Mortgage payment holidays have been extended for a further month following the Government’s announcement of a second national lockdown
People and businesses across the UK are being provided with additional financial support as the country is set to enter a second national lockdown as part of the Government’s plans to combat the spread of COVID-19.
Job Retention Scheme
The Prime Minister has announced that the government’s Coronavirus Job Retention Scheme (CJRS) – also known as Furlough – will remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme.
Businesses will have the flexibility to bring furloughed employees back to work on a part-time basis or furlough them full-time. They will only be asked to cover National Insurance and employer pension contributions which accounts for just 5% of total employment costs, on average.
£1.1 billion 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. In addition, businesses forced to close will receive grants worth up to £3,000 per month under the Local Restrictions Support Grant.
Businesses will be eligible for the following:
- For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
- For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
- For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.
Mortgage payment holidays
Mortgage payment holidays have also been extended allowing those that have already started a mortgage payment holiday to top up to six months without it being recorded on their credit file. Borrowers who have not yet had a mortgage payment holiday will be entitled to a six month holiday.
Chancellor Rishi Sunak 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.”