As we’re sure you will have seen or heard on your news feeds, the Chancellor, Rishi Sunak has confirmed that the furlough scheme has been extended and will remain open until 31 March 2021.
The news comes as it was announced the UK was to be plunged into a one month lockdown affecting businesses up and down the country. Employees are eligible for 80% of their current salary for hours not worked, similar benefits also apply to the self-employed, with an income support grant due to be increased from 55% to 80%. This already fragile and volatile situation has hopefully given businesses some peace of mind for the winter months, as the government aims to protect millions of jobs and keep unemployment down.
The Economic Effects Of The Global Pandemic
From shutting down businesses to the country entering another recession, one we haven’t seen on such a scale ever before. It’s fair to say the pandemic has effected the country’s economy hard. With coronavirus cases on the up and with the closure of businesses impacting us once again, the government predicts that GDP will fall again by the end of November.
Policies such as the furlough scheme are designed to keep businesses afloat and keep people employed. If cases of the virus continue to surge, then it’s likely that the economy could take years to recover.
If the government continues to spend more than it’s earning, this will leave the country in more debt than it’s currently in, which could be considered as a worse case scenario. The government has chosen to stand by supporting workers and businesses but that has come at a cost. It’s likely that these measures are going to cost over £200 billion this year.
On the 25th November The Office for Budget Responsibility (OBR) will present its latest outlook for the economy, this will be presented alongside the government spending review.
How To Get Furlough Support
To find out if you’re eligible for government support, please visit the government website where you can find out how much you can claim to cover wages for employees on temporary leave. Keep in mind that claims for furlough days in November must be submitted by the 14th December.
So that’s the all important day that you must put in your diary. We also recommend using the business support finder to see what support is available for you and your business, you can do so here. Please follow this link and answer the questions as directly and thoroughly as you can.
With this ever changing situation, things are likely to be on the move again. It’s expected that the policy will be reviewed again in January, so we would strongly suggest keeping a close eye on the situation.
Who Can Claim Furlough
For an individual to be placed on furlough, they mustn’t be able to do their job because either the workplace is closed or there isn’t enough work for them. Similar situations could be that someone in their household has to shield. Anybody who is a full-time, part-time, agency, flexible or zero-hour contract employee can be furloughed.
What Does It Mean If I’m Placed On Furlough
If you’re put on furlough by your employer then it’s very similar to gardening leave. You will still receive your pay check from your employer and you will still contribute taxes but you won’t be working for your employer during your furloughed period. So to put it simply, you will be getting paid not to work. However there is a catch. If you earn over £2,500 a month ,then you will not qualify for 80 per cent of your salary. Should this apply to you, your employer could choose to make their own direct contributions to your salary, or alternatively you can gain support through other systems such as Universal Credit.
How Can Ampios Future Market Service Help You
If you need help and want to Find Out More about Ampios Future-Market Service or have questions directly relating to furlough, please get in touch, we are happy to talk this through with you in more detail.