COVID-19 – Coronavirus Job Retention Scheme Extension
On the 12th of May 2020, the Government announced a further extension to the Coronavirus Job Retention Scheme. The scheme will not remain open until the end of August with employers able to furlough employees and receive funding for 80% of the employees wages.
From the Start of August employees will be able to return to work on a part time basis with the employer making up an amount to the employee up to the 80% of the wages up to the £2500 monthly limit. Support will be given to companies and to staff to enable them to learn new skills and do training for the period that they are being furloughed.
The Government has also published figures on the amount of support given through the job furlough scheme, as of the 12th of May 7.5million staff have been furloughed by 935,000 employers costing the Government £10.1 billion.
The Government as also announced updates on amount of the loan support that has been given to UK Companies.
Bounce back loans – 268,173 applications have been approved with a total of £8.378 billion being borrowed by UK Companies.
Coronavirus Business Interruption Loans Scheme – 35,519 applications have been made with £6.094 billion being borrowed by UK Companies.
Coronavirus Large Business Interruption Loans Scheme – 59 applications made with a total of £359 million being borrowed.
The amount of money borrowed by the bounce back loans scheme indicate that this is the scheme that businesses wanted originally when the loans scheme was announced. It is also apparent that small business are the most at need in the UK to access funding the Coronavirus outbreak to ensure that they can continue to function and try to get through the current lockdown.
With no end in sight for the current lockdown it will surely mean that the support will continue for quite a while yet if the country is to avoid a recession.