Earlier this week, UK Chancellor Rishi Sunak announced the extension of the furlough scheme until the end of March.
The scheme will pay up to 80% of a staff member’s wage, capped at £2,500 a month, though the policy will be reviewed by Government in January.
Sunak is hopeful that the extension of the scheme into the new year – after it had previously been extended to December – will provide security to businesses throughout the winter.
The news will likely have a major impact for businesses operating in Calderdale, Kirklees, Wakefield and across West Yorkshire, and will heavily influence plans for recruitment and growth.
Companies may claim under the furlough scheme for the wages of people who cannot do their jobs, due either to the workplace being told to shut or because there is not enough work for them.
As part of the revised scheme, anyone made redundant after 23 September can be rehired and put back on furlough.
Sunak added: “The security we are providing will protect millions of jobs.”
He also outlined the further features of the revised scheme:
- “More generous support to the self-employed and paying that support more quickly”
- “Cash grants of up to £3,000 per month for businesses which are closed, worth over £1 billion every month”
- “£1.6 billion for English councils to support their local economy and local healthcare response”
- “Longer to apply for our loan schemes and the Future Fund”
- “The chance to top-up Bounce Back Loans”
At Cooper Accounting, we’re working with businesses to navigate the challenges of Coronavirus, whether that’s through managing cashflow or understanding the tax incentives available.
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