Post-furlough support for business

Post furlough support for UK employers

Update 31/10/2020 – in a surprise announcement, PM Boris Johnson extended the furlough scheme to 2nd December 2020. The Job Support Scheme will now not take place until furlough has expired. Click here for information on furlough.

Are you confused about the post-furlough support for UK employers. Well you aren’t alone! Between March and October 2020, there was a unified regime of support. Yes it changed regularly but it was consistent. Now post-furlough support is linked to which tier you are in (for England). So we’ve produced this blog to summarise the post-furlough support for UK employers.

Tier 1 post-furlough support

Tier 1 is the English national default. The rule of six applies indoors and outdoors. Pubs and restaurants must close at 10pm.

Job support scheme

The main support available for employers is the Job Support Scheme. This allows viable roles that can’t yet operate at normal hours to be part subsidised by the taxpayer. As long as a minimum 20% of the hours can be worked, the scheme is open to all UK employers.

Tier 2 post-furlough support

In Tier 2, families cannot mix indoors. Effectively this means that pubs and restaurants can not be used indoors to meet other households.

Post furlough support for UK employers

Under new rules announced today (Thursday 22nd October), the government will now fund 62% of the wages for hours not worked. This more than doubles the maximum payment to £1,541.75. Employers will pay 20% of usual hours worked and 5% of usual hours not worked.

Employers with over 250 employees will need to demonstrate that they have either lost money or that revenue has stayed flat in order to qualify. This requirement doesn’t apply to charities or SME’s.

Tier 2 post-furlough support for hospitality

In addition to the support announced above, local councils will be given money to fund monthly payments of up to £2,100 to B&B’s, Hotels and Restaurants. Scotland, Wales and Northern Ireland will get an equivalent sum based on the Barnett Formula.

Tier 3 - post furlough support

Under Tier 3, pubs and bars can only remain open if they act like restaurants. This means they provide a full lunchtime or main evening meal. Alcohol may only be served with that meal. You also cannot socialise with anyone outside of your family unit or support bubble.

The Job Support Scheme splits into 2 here. If you are able to stay open, then the Job Support Scheme (Open) applies as previously described. If you are forced to close due to increased restrictions, then the Job Support Scheme (Closed) applies. 

Job support scheme

Here the Government will pay 67% of salaries and the employee will forgo 33% of salary. However this will only be paid if employers are forced to close. There are also grants of between £1,000 and £3,000 every 3 weeks. Click here for more information.

Self employed scheme

The Self Employed grant has also been increased to 40% of profits with a cap of £3,750. The 2 extra payments will be cover November to January and February to April.

Other considerations

If you utilise the Job Support Scheme, you cannot make anyone redundant whilst they are using the scheme. The claim period is a minimum of 7 calendar days so factor this into your planning.

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