I welcome the announcements today, by the Prime Minister and the Chancellor, of further measures to support our economy. Specifically, the comprehensive measures which will protect jobs in the UK, provide financial support to those who have seen a reduction in their income; through the Coronavirus Job Retention Scheme, changes to Universal Credit, and the safety net extended to those in rented accommodation through increasing eligibility for housing benefit.
The Coronavirus Job Retention Scheme will contribute 80% of the salaries of retained workers, up to £2,500 per month. This funding will be backdated to the 1st of March and it will be available to employers for an initial three month period. It is anticipated that the first payments under the scheme will be made before the end of April. The Chancellor has also undertaken to extend the length of this facility to businesses, if required to do so, to allow grants to support as many jobs as possible. Businesses will also be able to defer the next quarter’s VAT payments, from now until the end of June, injecting an additional £30bn into the economy.
For those who are currently not employed, as a result of recent redundancies or decreased demand in the economy for their services, Universal Credit will be available. Universal Credit will also be increased by an additional £1,000 rise on the normal annual rate. An additional safety net will be made available to the self-employed – with statutory sick pay available at a rate of £94.25, and they will also be able to defer their self-assessment payments until January 2021.
The Government’s guidance is being updated continuously. For the most up-to-date information regarding the financial support available to businesses and workers, please see the relevant pages on gov.uk here: https://www.gov.uk/coronavirus
