Coronavirus code of practice, CBILS and furlough updates

Here are further updates from the Government on the Coronavirus restrictions:

  1. Government to publish code of practice with commercial sector to support high street businesses with rent payments

The Government is to publish a code of practice to support high street businesses through coronavirus  A working group has been established by the government with the commercial rental sector to develop a code which encourages fair and transparent discussions between landlords and tenants over rental payments during the coronavirus pandemic and guidance on rent arrear payments and treatment of sub-letter and suppliers.  More information can be found here: https://www.gov.uk/government/news/government-to-publish-code-of-practice-with-commercial-sector-in-boost-to-high-street?utm_source=39d0dff7-e54f-454a-aa92-719e28aae777&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

  1. Large Coronavirus Business Interruption Loan Scheme (CBILS) increased

The loan scheme (CBILS) helps medium and large sized businesses to access loans and the amount businesses can apply for has been increased to £200 million.  The government guarantees 80% of the finance to the lender.  More information can be found here: https://www.gov.uk/guidance/apply-for-the-coronavirus-large-business-interruption-loan-scheme?utm_source=52fa09f2-ecd7-403a-8cff-ee4425492767&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate#history

  1. Chancellor expected to ask employers to pay 20% of workers’ wages 

The Chancellor Rishi Sunak will be delivering the Daily briefing later and will include an update on how businesses will be asked to contribute to furloughed employees’ wages from August.  He is expected to announce that the government will be asking firms to pay 20% of workers’ wages as well as national insurance and pension contributions, with the government paying  60% of each wage up to a cap of £2,500 a month from August.

The Chancellor has this evening announced further details of changes to the furlough scheme and support for self-employed workers.

Coronavirus Job Retention Scheme

  • The current furlough scheme will continue on the same basis, with the government paying 80% of an employee’s wage up to a cap of £2,500 a month will continue during June and July with a 0% contribution from employers.
  • In August, the government will still pay 80% of an employees wage, and employers will be asked to pay their furloughed employees national insurance and pension contributions.
  • In September, the government will pay 70% of furloughed employees wages to a cap of £2,190, and employers will be asked to contribute 10%.
  • In October, the government will pay 60% of furloughed employees wages to a cap of £1,875, and employers will be asked to contribute 20%.  The scheme will come to an end at the end of October.

Flexible Furlough

  • Flexible furlough will be introduced from 1 July so that employers can decide on the most appropriate arrangements for them to reintroduce employees into the workplace.  Furloughed employees will be able to return to work part-time, the employer will be responsible for wages for the hours worked, and the government will pay the relevant percentage of the salary for the remaining contractual hours as per the above tapering.

Self-employment income support scheme:

  • The Self Employment Income Support Scheme has been extended so that there will be a second and final grant application process available in August, for a further 3 month period based on 70% of average 3 months profits, capped at £6,570.

More information will be available at www.gov.uk

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