COVID-19 Update – 5 November – Furlough extended and SEISS and funding increased

It isn’t possible to write emails in pencil, but we may have to find a way given the volume of changes in the last four days…

Workers across the UK are set to benefit from the increased support announced by the government today.

Furlough

In the latest announcement, the government have stated that the furlough scheme will not only be extended for a month – it will be extended until the end of March. Employees will receive 80% of their usual salary for hours not worked, up to £2.5k a month. This will be reviewed in January to ask the employer to contribute more. Full guidance for the CJRS extension will be published on 10 November.

As part of the revised scheme, anyone made redundant after 23 September can be rehired and put back on furlough.

Job Retention Bonus

The CJRS Bonus will no longer be paid in February and has been extended until the end of March 2021

SEISS

The government will be increasing the support for workers through the Self-Employment Income Support Scheme by increasing the third grant. The third grant will now be calculated at 80% of the average trading profits, up to a maximum of £7.5k. This covers the period November 2020 to January 2021 – it had originally been calculated at 40% and over the weekend was increased to 55%, and will be welcome support now that it is increased to 80% to mirror the CJRS.

Funding for devolved administration

The upfront guaranteed funding for the devolved administrations is set to increase from £14bn to £16bn. This uplift will continue to support workers, business and individuals in Scotland, Wales and Northern Ireland.

We will update with more detail as it becomes available