As the UK enters a one month lockdown and businesses face potential restrictions over the course of Winter, it was inevitable that support would be expanded.

We already knew that the Job Retention Scheme (also known as furlough) was to be extended to December, but today the Chancellor went further. He announced a major extension to the Furlough scheme till March and substantially increased the generosity of the grant for the Self-Employed.

In this update, I’ll run through the key announcements that affect your business.

Furlough Extension

The Job Retentions Scheme will be extended to March. Eligible employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. Employers will not have to contribute to that salary but will still have to make National Insurance and Employer pension contributions for hours not worked.

Employers will also be given flexibility on the scheme, with the option to furlough workers for just some of their hours.

There will be a review in January into the scheme, where employers may be asked to contribute as they did in August and September.

Additionally, employees that were employed and on the payroll on 23 September 2020 (the day before the Job Support Scheme announcement) who were made redundant or stopped working afterwards can be re-employed and claimed for.

However, the Job Retention Bonus will no longer be paid in February. But they will redeploy a retention incentive at a later date.

Self Employment Income Support Scheme

The Government is increasing the overall level of the grant to 80% of trading profits covering November to January for all parts of the UK. It was previously set at 55% of trading profits, or 80% in November and 40% in remaining months. The grant will open on November 30th two weeks earlier than announced and will be paid in time for Christmas.

For more information in both the schemes, you can read HM Treasury's Economic Support Factsheet.

We will keep you updated as more information comes out about these schemes through these Policy Updates and our Friday Newsletter.