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Announcement of Budget Date and Support Schemes Extended

Posted: December 17, 2020
Posted: 17 December 2020

Furlough, self employed and loan schemes have been extended and the Budget date announced.

 

See the latest press releases at:

Chancellor extends furlough and loan schemes – GOV.UK (www.gov.uk)

Budget 2021 – GOV.UK (www.gov.uk)

 

Key points:

  • Furlough scheme extended in substantially its current form to end April 2021 – the planned January review of the employer contribution will now not happen, the scheme will be unchanged (see extract below). The final details of this and the legislation are awaited, to see if there are any other amendments.
  • Self employed scheme also to be extended to end April 2021
  • Bounce back and CBILs loans now available to end March 2021
  • Budget date set for 3 March 2021

 

Furlough

“The Chancellor said he would review the employer contribution element of the CJRS in January, but decided to bring this forward to allow businesses to plan ahead for the remainder of the winter and the New Year.

The government will continue to pay 80% of the salary of employees for hours not worked until the end of April. Employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked.

The Chancellor said he would review the employer contribution element of the CJRS in January, but decided to bring this forward to allow businesses to plan ahead for the remainder of the winter and the New Year.

The government will continue to pay 80% of the salary of employees for hours not worked until the end of April. Employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked.”

 

Self employed scheme:

“The furlough and loan schemes are part of the government’s wider plan to support, create and protect jobs through its Plan for Jobs. This includes the Kickstart Scheme, more investment in training and skills as well as the Self Employment Income Support Scheme grant, with a fourth grant being made available from February to April 2021.”

 

Loans schemes:

“The government has already announced that more support will be available beyond March, through a successor loan scheme. More details of the scheme will be announced in due course, with the government providing a further update on wider Covid-19 economic support at the Budget on 3 March.”

If you have any questions on this please email info@burgesshodgson.co.uk