in , , , , ,

How the Local Furlough Scheme will work for your small business

How the Local Furlough Scheme will work for your small business


Chancellor Rishi Sunak is expected to announce government will cover two thirds of wages for firms hit by hard lockdown

Chancellor Rishi Sunak is due to announce a further Local Furlough Scheme for businesses caught out by hard local lockdowns.

Pubs and restaurants and other businesses ordered to close in areas in hardest-hit regions will be able to claim for two thirds of wages for staff put on furlough.

Manchester, Liverpool and other areas of the North are expected to go into harder lockdown early next week, once the government launches its new traffic-light system for dealing with coronavirus outbreaks.

>See also: Rishi Sunak plans grants for small businesses hit by hard lockdown

London is expected to follow shortly, following a warning from Mayor Sadiq Khan.

Although the government is expected to cover 66 per cent of staff wages, it is still short of the 80 per cent the hospitality sector had been calling for.

Meanwhile help for hospitality businesses forced to close in Scotland will get their own £40m support package.

The Local Furlough Scheme is more generous than the Jobs Support Scheme, announced last month, as the successor to the Coronavirus Job Retention Scheme, which ends on October 31.

>See also: Local lockdowns only make the problem of late payment worse

Every business in the UK is eligible for the Jobs Support Scheme from November, which covers one third of the wages for staff on days they are not working due to coronavirus. Business owners cover the other 33 per cent on days not work, with employees taking a one-third pay cut.

What that means in actuality though is, if an employee is working the minimum one third of their usual hours, then the government is only covering 22 per cent of their wages.

Critics have pointed out that it would be cheaper for a small business to keep on one staff member full time than to retain three part-time workers through the scheme.

Further reading

Covid expected to cost small businesses £69bn



Source link

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading…

0

Comments

0 comments

SME owner

Meet the SME finance broker supporting new businesses during COVID-19

London lockdown

Eat Out to Help Out boosts slowing economic recovery