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Government extends Job Retention Scheme to October

Government extends Job Retention Scheme to October
Dan Martin
Dan Martin
Freelance content creator & event host
Dan Martin Content & Events
 

Posted: Tue 12th May 2020

The government's scheme providing grants to cover employee wages for businesses hit hard by coronavirus has been extended until the end of October.

Chancellor Rishi Sunak said the Job Retention Scheme will continue unchanged until July and then from August until October, furloughed workers will be able to return part-time. Employers will need to pay a percentage towards the salaries of furloughed staff.

Part-time furlough was an issue Enterprise Nation discussed during a meeting with small business minister Paul Scully.

The proportion of employee wages covered by the government remains at 80%.

New statistics published today revealed 7.5m workers have been furloughed and almost one million businesses have used the scheme so far.

Reaction to Job Retention Scheme extension

Emma Jones, founder of Enterprise Nation, said: "This will be a relief to the small firms who are unable to operate in the short term. They may now have the ability to work on shaping and developing the business in readiness for when we emerge from this crisis. The number of businesses approaching us for advice on finance has already moved on to those looking for support to build new skills and make plans for re-opening.

"We think the part-time furlough idea for directors is important, but again we'd like to hear more details about how this will operate in practice.

"One caveat to all of this is the nervousness around the mounting but inevitable cost to the taxpayer."

Bounce Back Loans and support for company directors

Taking questions in Parliament, Sunak was also asked whether he will extend the furlough scheme to cover limited company director dividends. As he has noted previously, the chancellor said it's difficult to separate dividends as income from other income but added "my team have considered and are considering proposals" on including dividends in grants.

He also revealed new statistics for the Bounce Back Loan Scheme which provides funding to small and micro businesses. A total of 268,000 loans worth £8bn have been provided so far.

Through the Coronavirus Business Interruption Loan Scheme, 36,000 loans worth over £6bn have been approved.

The latest coronavirus support information

We are keeping you updated on the latest information on how to access the government's coronavirus business support here. You can also find advice and ask a question on Enterprise Nation's coronavirus business advice hub. Follow Enterprise Nation on Twitter too for updates.

 
Dan Martin
Dan Martin
Freelance content creator & event host
Dan Martin Content & Events
 
I'm a freelance content creator and event host who helps small businesses and the organisations that support them. I have 18 years of experience as a small business journalist having interviewed hundreds of entrepreneurs from billionaires like Sir Richard Branson to the founders behind brand new start-ups. I've worked for a range of leading small business publications and support groups, most recently as head of content at Enterprise Nation where I was responsible for the prolific output of content on the company's blog and social media. I'm based in Bristol where I run and host regular events with the local small business community and have strong connections to major business organisations in the south west region. In total, I've hosted over 50 events; from intimate meet-ups to conferences with an audience of hundreds including events for international brands like Facebook and Xero. I'm also a big fan of podcasts having hosted Enterprise Nation's Small Business Sessions as well as lots of online events including Facebook Live interviews, webinars and three live web chats from inside 10 Downing Street. With my partner, I co-run Lifestyle District, a lifestyle blog focused on culture, art, theatre and photography. I'm here to help. I'm volunteering free advice calls of up to an hour as part of the Recovery Advice for Business scheme, over the next 6 months. Please get in touch to see how I can help your business. 
 

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