Credit, Collections & Insolvency News
The Government has announced the extension of the furlough scheme in March and has also announced increased self-employed support.
The Coronavirus Job Retention Scheme (CJRS) will now run until the end of March with employees receiving 80% of their current salary for hours not worked.
Similarly, support for millions more workers through the Self-Employment Income Support Scheme (SEISS) will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.
The Chancellor of the Exchequer Rishi Sunak said “I’ve always said I would do whatever it takes to protect jobs and livelihoods across the UK – and that has meant adapting our support as the path of the virus has changed.”
“It’s clear the economic effects are much longer-lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support.”
“Extending furlough and increasing our support for the “self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter.
The government also announced:
cash grants of up to £3,000 per month for businesses which are closed worth more than £1 billion every month
£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
plans to extend existing government-backed loan schemes and the Future Fund to the end of January, and an ability to top-up Bounce Back Loans
an extension to the mortgage payment holiday for homeowners
up to £500 million of funding for councils to support the local public health response.
The Money Advice Trust, the charity that runs National Debtline and Business Debtline, has welcomed the Chancellor’s extension of the furlough scheme until March 2021 and improved support for self-employed people through the increase in the forthcoming Self-Employment Income Support Scheme grant.
The charity is now calling on the government to follow today’s move by announcing now the extension of its £20-a-week uplift in Universal Credit beyond April, to provide continued certainty of financial support for people who have already lost their jobs.
Joanna Elson OBE, Chief Executive of the Money Advice Trust said “The Chancellor acknowledged today that people need certainty – and today’s extension of furlough will come as a relief to millions worried about their jobs and financial futures as we go into this second lockdown. The increase in Self-employment Income Support Scheme payments will also give welcome certainty to those who are eligible – although the same eligibility gaps remain.”
“Given the long-lasting economic impact of the outbreak, however, people need certainty well beyond just this winter. Just as today’s announcement provides some short-term certainty for staff and businesses forced to close, this needs to be extended to continued support for people who have already lost jobs or will lose them as a result of the outbreak.”
“The Government should commit now to extending its changes to Universal Credit – including retaining the extra £20 a week increase well beyond April.”
Alistair Cromwell, Acting Chief Executive of Citizens Advice, said “Today’s announcement is hugely welcome and will help provide both employees and employers with some certainty through the turmoil of the next five months.”
“We’ve seen how important the safety net of the furlough scheme has been in protecting jobs, ensuring those workers who are most vulnerable aren’t put at unnecessary risk, and safeguarding viable businesses.”
“The government was right to introduce it back in March and it is right to extend now.”