Beyond the balance sheet

Forced lockdown closure? 67% of businesses wages to be covered by government

Stuart Crook 09/10/2020 2 minute read

Stuart Crook FCA, explains Rishi Sunak's latest measures for businesses facing closure due to local lockdown restirctions.

If your business is forced to close as a result of a local lockdown, then from 1 November 2020 you will be able to apply for a grant that will cover up to two-thirds of your employees salaries.

Chancellor Rishi Sunak has announced that the government will pay 67% of all your staff salaries up to a limit of £2,100 a month. As an employer, you won't be required to contribute towards wages but you will have to cover National Insurance and pension contributions.

Monitor and keep a tight grip on cash flow during the COVID-19 pandemic >

Qualifying criteria

  • Your employees have to be off from work for a minimum of seven consecutive days
  • Your business will only be eligible for the scheme if you are subjected to local restrictions

The measures have been put in place as the government looks to protect jobs and the economy during an Autumn resurgent wave of the COVID-19 pandemic.

Further support measures for those in lockdown

Cash grants are also being increased to help businesses with their fixed costs where they are forced to shut in local lockdowns in England. The grants will be linked to rateable values meaning they could be up to £3,000 per month, to be paid every fortnight.

This will come a relief to many businesses, especially those in the leisure and hospitality trade which have been particularly impacted by the virus and social distancing measures.

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The content of this post is up to date and relevant as at 09/10/2020.

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