Government employment schemes signal more support for employers
Chancellor Rishi Sunak announced yesterday a new Jobs Support Scheme operating from 1st November, leading from the Coronavirus Job Retention Scheme closing on 31st October, available for another 6 months.
Whilst welcome news, the BPMA is rapidly assessing where the next steps will lead the future of the industry on face to face events. Seeking comment from end user events such as B2B, the BPMA have been told statements will be released in the coming days as organisers rapidly replan face to face events for new dates or consider hybrid approaches.
As more detail emerges for the Job Support Scheme, most small and medium sized businesses will qualify however the viability of the jobs is also under review. Details of the new scheme can be found here with a summary below:
- The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce. The scheme will open on 1 November 2020 and run for 6 months.
- The company will continue to pay its employee for time worked, but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.
- The Government will pay a third of hours not worked up to a cap, with the employer also contributing a third. This will ensure employees earn a minimum of 77% of their normal wages, where the Government contribution has not been capped.
- Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
Sunak also announced extensions to self-employed grants and important changes for businesses who have taken out Government backed loans during the last few months.
Businesses which have taken out bounce back loans will be given more time and greater flexibility to repay in a new “Pay As You Grow” scheme. This will not affect credit ratings and was confirmed in the Chancellor’s speech yesterday.
This will allow companies to extend their bounce back loans from six to 10 years, reducing their paymentsThe government guarantee on Coronavirus Business Interruption Loans will be extended to 10 years and a new successor loan guarantee programme will be announced in January.
Businesses will be able to apply for all Government loan schemes until the end of the year.The Government will allow business to defer VAT payments and will freeze the new 5% VAT rate for businesses in the hospitality and tourism sectors until March 2021.
BPMA relaunch webinars to support members
BPMA members are encouraged to join the webinar series for updates and can register here. The next webinar takes place on Thursday 8th October at 12:30pm. Hosted by CEO Carey Trevill, she will be bringing updates and news for members to support business during this evolving situation, pledging to run additional sessions as needed for members who require support.
Are you a BPMA member who needs support or information on the new schemes?
Please contact Carey Trevill today with any questions and to access member benefit support.