10 bits of new financial support from the government you might not know about
The coronavirus pandemic has created not only a health emergency but an economic one.
Protecting lives and safeguarding jobs has been at the heart of the UK Government’s response and they’ve provided the largest package of emergency support in post-war history, worth more than £200billion.
Chancellor Rishi Sunak has unveiled a new raft of support for workers and businesses after Prime Minister Boris Johnson announced new restrictions to help slow the spread of coronavirus.
Protecting jobs is a top priority, with the Coronavirus Job Retention Scheme extended until March and a third grant for the self-employed upped to 80% of trading profits.
But are you aware of all of the various forms of financial support the government have introduced to help workers – and the country as a whole – through the coronavirus pandemic?
1. Coronavirus Job Retention Scheme
The scheme has been extended to the end of March. Eligible employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month until the end of January, when the scheme will be reviewed.
It’s flexible, so businesses can use it for any amount of time and shift pattern, including furloughing staff full-time. Neither the employer nor the employee needs to have previously claimed or have been claimed for under CJRS to make a claim under the extended CJRS (if other eligibility criteria are met).
2. Self-Employment Income Support Scheme (SEISS) Grant Extension
This runs from November 2020 to April 2021. Grants will be paid in two taxable lump sum instalments each covering a three-month period, with an increase to 80% of trading profits covering November to January for all parts of the UK. It’s based on 80% of 3 months average trading profits, paid out in a single instalment and capped at £7,500. The generous grant will be paid sooner than planned – in good time for Christmas.
This is in addition to the more than £13.7 billion of support already provided for over 2.6 million self-employed individuals through the first two stages of the Self Employment Income Support Scheme – one of the most generous in the world.
3. Tax cuts and deferrals
A 15% VAT cut for tourism and hospitality to the end of March 2021 and more time to pay deferred VAT and tax bills, with the option to pay in smaller instalments up to the end of March 2022.
4. Pay as You Grow
Businesses will have more flexibility to pay back Bounce Back Loans and repayments for the Coronavirus Business Interruption Loan Scheme can be extended from six to ten years. Applications for the CBILS, BBL, Coronavirus Large Business Interruption Loan Scheme and Future Fund extended until the end of November.
5. Extensions on applications for loan schemes
Applications for the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, Future Fund, and Coronavirus Large Business Interruption Loan Scheme are now open to the end of January 2021. Businesses who have borrowed less than their maximum can now top up their existing loan.
6. Cash grants
Cash grants of up to £3,000 per month for businesses which are closed in England and backdated grants for areas that were Tier 2 and 3.
7. Money for councils
£1.1 billion for councils in England to further support businesses more broadly over the coming months.
8. Extension of existing loan schemes
The existing loan schemes have now been extended to the end of January and an ability to top-up Bounce Back Loans.
9. Boost for devolved administrations
Destination United Kingdom
Increase the upfront guarantee of funding for the devolved administrations from £14bn to £16bn, on top of their Spring Budget 20 funding.
10. More support for devolved governments
More support for the devolved governments in Scotland (an additional £8.2 billion), Wales (£5 billion) and Northern Ireland (£2.8 billion).
- Find out more about how you can get help at gov.uk/business-support
This article is part of a paid-for partnership with the UK Government.