Chancellor extends furlough, bolsters SEISS

Chancellor extends furlough, bolsters SEISS

In an announcement earlier today, Chancellor Rishi Sunak has confirmed that he will extend the furlough scheme across the UK. The scheme will now run until the end of March 2021, and pay as much as 80% of a furloughed worker’s wages – up to £2,500 a month. The scheme also allows those made redundant after 23rd September 2020 to be rehired and put back on furlough.

Mr. Sunak told listeners in the House of Commons that his intention was “to give businesses security through the winter,” noting “the security we are providing will protect millions of jobs.”

The policy will be reviewed in January. This review, he added, would primarily be about deciding “whether economic circumstances are improving enough to ask employers to contribute more.”

The Chancellor also updated the Self-Employment Income Support Scheme (SEISS). A third grant is available for self-employed workers whose businesses have taken a hit from Covid-19, covering the period between November and January. Grants will be calculated at 80% of average trading profits, with a maximum value of £7,500.

Mr. Sunak said that this added support was a direct result of the UK entering a second country-wide lockdown – a decision he fully supports:

“Given these changed public health restrictions and the economic trauma they would cause in job losses and business closures, I felt it best to extend the furlough scheme rather than transition at that precise moment to the new job support scheme.”

Full guidance for the CJRS extension will be published on 10th November 2020.

If you believe your business is eligible for financial help, get in touch with JW Hinks on 0121 456 0190. You can benefit from our friendly and professional team’s expert advice, ensuring that you make the most of the support that is available to you.