As we try and get back some
normality in our lives, and places start to open back up for business. We still
need to remember that the fight is not over and need to abide by the rules set
in place. Well done to all pushing through and staying motivated. Throughout
lockdown we have updated you with what the government have announced and plan
to do. There have been a lot of information announced, you can find all the
latest below.
How has the Furlough scheme
changed?
One of the many questions we
get asked is, how has the furlough scheme changed? The Coronavirus Job
Retention Scheme, furlough as its more commonly called is designed to help
people who could not do their jobs because of the virus and prevent mass
redundancies.
The scheme is to close in
October and has had some criticism with the decision to close, but it has been backed by the Bank of England
boss,
which says workers should be helped to ''move forward'' and not kept in
unproductive jobs.
From 01 August 2020 the
government will pay 80% of wages up to a cap of £2,500. Employers will now have
to pay employers National Insurance Contributions (NIC) and pension
contributions. You can bring back employees to work shifts and then put back on
furlough if needed. Remember any hours worked, the employee is entitled to 100%
of their wage and this needs to come directly from the employer.
From 01 September 2020 the
government will contribute 70% of wages up to a cap of £2,187.50. Employers
will again pay employer National Insurance Contributions (NIC) and pension
contributions just like for August. However, now employers will have to pay 10%
of wages to make up the 80% total up to a cap of £2,500. Part time furlough is
still available, but any hours worked by staff, employers will have to pay 100%
of wage.
From 01 October 2020, 60%
of wages will be contributed by the government up to a cap of £1,875. Employers
will pay employer NICs and pension contributions and top up 20% of wages to
make up 80% total up to a cap of £2,500 until when the scheme ends at the end
of the month.
The aim of the tapering is to
allow employers to ease employees back in to work at the same time as
businesses productivity hopefully resumes.
How does the part time furlough
work?
The part time furlough is
designed to give you the chance to call an employee back in to work if there is
a lot of work or put them back on furlough if the workload drops off. So, how
does it work?
If you have a member of staff
who works 8 hours a day, 5 days a week and your business is closed, you can
furlough the member of staff and the government will cover a percentage of the
wage, depending on the situation as mentioned above. If you want to trial
opening your business for a couple of days a week, and you need the member of
staff for 3 days a week, you will be liable to pay 100% of the wage for the 3
days worked, and the government will pay the percentage equivalent for the
remaining 2 days not worked and on furlough. The rules mentioned above applies,
regarding the percentage amount and NIC’s being paid by yourself.
The government has allowed the
part time furlough to relieve some of the financial strain of keeping staff and
prevent mass redundancies. For each furloughed member of staff still employed
as of 31 January 2021, the government will give the employer a one-off £1,000
bonus
Kickstart Scheme
The chancellor also announced
a new Kickstart Scheme worth to be in the region of £2 billion. The plan is to be
launched to create hundreds of thousands of new, fully subsidised jobs for
young people. If you claim Universal Credit and are aged between 16-24 and at
risk of long-term unemployment will be eligible. Funding will be available for
each six-month job placement and will cover 100% of the National Minimum Wage
for 25 hours a week. Employers will be able to top this wage up if they please.
How to apply for this, still
has not been fully revealed by the government. As it gets closer to the scheme
being live, more information will be revealed and as always, as soon as we
know, we will pass the information to you.
Help Out Eat Out
A little more positive news from
the hospitality sector is for the month of August you can get 50% off your bill
in participating restaurants with the other half covered by the government.
This is capped at £10 per diner and excludes alcohol and is only valid for
Monday – Wednesdays in August and can be used as many times as you like. The
offer is for dine in only as the government encourages people to go out. To
check which restaurants are participating click
here
and enter your post code to see who around you are participating.
Remember to support your
independently owned food venues during these tough times and remember to
practice social distancing. Stay motivated and stay safe as together we can end
2020 on a positive bang!
