Furlough scheme & Covid-19 business loans extended

Furlough scheme & Covid-19 business loans

January 08, 2021

Recently in UK Chancellor Rishi Sunak is planning to pull out the corona virus business loan schemes till the end of March and furlough scheme until the end of April 2021 to hold up UK businesses as restrictions continue. The Budget is set for 3rd March 2021. As more areas of England delve into tier three restrictions today, Chancellor Rishi Sunak has extended the corona virus business loan applications until the end of March to ease prolonged business disruptions. Additionally, the government has also announced that the furlough scheme will be extended next to loan schemes until 30th April 2021, with the government continuing to contribute 80% towards earnings.

As per Mr Rishi Sunak, the Chancellor the government is supporting the premium businesses towards certainty to plan ahead in spite of the pandemic situation becoming tough for the people and market by providing clarity and financial support. Total of £68bn has been injected by the UK government into the economy via business loan schemes. In the current scenario it is seen that the government is focusing on recovery in 2021 and is planning to move to finance grant schemes via local enterprise partnerships. So far, the Corona virus Job Retention Scheme (CJRS) scheme has helped to protect almost 9.6 million jobs across the entire UK, with more than one million businesses having access of loans to provide support throughout the pandemic.

Even in this scheme Employers have to pay wages, NICS and pensions contribution for hours worked and NICS and pensions for hours not worked. Eligibility criteria will also remain the same. Additionally it should also be noted that the Corona virus Job Retention Scheme has been further extended until the end of April 2021. The eligibility criteria for the UK-wide furlough scheme will remain unaffected and these changes will keep on applying further. Extension of the scheme until the end of April ensures certainty about what support will be available to businesses across the country.

This simply means that furloughed employees will continue to receive 80% of their normal salary for hours not worked until the end of April. The Treasury was set to re-evaluate the CJRS policy in January “to come to a decision whether economic circumstances are getting better enough to ask employers to contribute more. COVID-19 business loan schemes will also be extended until the end of March by the Government. In this scheme the Bounce Back Loan Scheme, Corona virus Business Interruption Loan Scheme, and Corona virus Large Business Interruption Loan Scheme are included which were all due to close in January.  

Staff in all areas of the United Kingdom can be furloughed by various businesses where working hours are classified or affected by COVID-19. For instance, if a salon does not have enough business to retain a member of staff who working for contracted hours, they can be put on part-time or full-time furlough. When a member of staff is furloughed, they must not be given any work for your business.  These extensions come ahead of the Budget will take place on 3rd March 2021 as confirmed by the Chancellor.