June 03, 2020

How we're protecting jobs, businesses and livelihoods as we begin to kickstart our economy

 

Moving into the next phase of our response, we are focussed on not just on saving lives, but also saving livelihoods. As we begin to re-open our country and kickstart our economy, these schemes will adjust to ensure those who are able to work can do so, while remaining amongst the most comprehensive and generous in the world.

We stood behind Britain’s businesses and workers as we came into this crisis and we stand behind them as we come through the other side. We will continue to do everything we can to ensure people can pay their bills and put food on the table – as people continue to stay alert, to control the virus and save lives.

How we're kickstarting our economy

We're supporting the self-employed by increasing the Self-Employment Income Support Scheme for three months. That means people will be able to claim a second grant in August worth 70% of their average monthly trading profits, capped at £6,570 in total.

The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus. And you do not need to have claimed the first grant to receive the second grant, you just need to have been adversely affected by coronavirus in that later phase.

The Chancellor also set out more details on how the Coronavirus Job Retention Scheme will continue to support jobs and business as people return to work. We have already extended the scheme until the end of October – that’s a total eight months of support.

From July, businesses can bring furloughed employees back part time, a month earlier than previously announced, to help support people back to work. Employers will be able to claim the furlough grant for the proportion of the employees’ normal hours they are not working – but they must pay their employees for the hours they are working. The Government will continue to pay 80% of wages up to £2,500, plus employer National Insurance and pension contribution.

From August, the job retention scheme will be slowly tapered to reflect that people will be returning to work. The government will pay 80% of wages up to a cap of £2,500, but employers will start paying employer National Insurance and pension contributions.

From September, the government will pay 70% of wages up to a cap of £2,190. Employers will be asked to pay the remaining 10%, in addition to employer National Insurance and pension contributions.

And from October, the government will pay 60% of wages up to a cap of £1,875. Employers will be asked to pay the remaining 20%, in addition to employer National Insurance and pension contributions.

These schemes have been a lifeline for millions