Ask the NHBF | NHBF welcomes Government announcement to further support employed and self-employed in latest update

The NHBF has welcomed the latest announcement on Friday (30^th May 2020) by the chancellor, Rishi Sunak, giving further details on the next phase of the Government’s Coronavirus Job Retention Scheme (CJRS), widely known as the furlough scheme.

This update covers the latest government announcements about:

• Planned changes to the job retention scheme.
• Support for the self-employed: second and final grant.

Changes to the government’s job retention scheme

In June and July, the government will continue to pay 80% of wages up to a cap of £2,500 as well as employer National Insurance Contributions and pension contributions for the hours the employee doesn’t work.

Changes from July

• From 1 July 2020, employers can bring back furloughed employees on a part-time basis. Employers must pay wages for the hours their employees work. Employers will still be able to claim under the scheme for the hours not worked. You will need to agree any flexible furlough arrangements with your employees.

• In August, the government will pay 80% of wages up to a cap of £2,500. Employers will pay:
  • National Insurance and pension contributions for the hours the employee does not work.

• In September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay:
  • 10% of wages to make up the amount to 80% up to a cap of £2,500.
  • National Insurance and pension contributions for the hours the employee does not work.

• In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay:
  • 20% of wages to make up the amount to 80% up to a cap of £2,500.
  • National Insurance and pension contributions for the hours the employee does not work.

Scheme will close to new entrants from 30 June

The scheme will close to new entrants from 30 June 2020. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full three-week period before 30 June 2020.

This means that the final date by which an employer can furlough an employee for the first time will be 10 June 2020.

Support for the self-employed: second grant

Self-employed individuals will be able to claim a second and final grant when applications open in August 2020. The grant will be worth 70% of the individual’s average monthly trading profits and will be paid in a single instalment capped at £6,570 total.

The first grant was worth 80 per cent of the individual’s average monthly trading profits up to a maximum of £7,500. Applications for this grant closes on 13 July 2020.

Hilary Hall, NHBF chief executive commented ”The NHBF has been speaking continuously with relevant government departments to ensure financial support for all those in the industry, whether business owners, employees or self-employed to make sure it does not peter out before we have had a chance to re-open and return to full trading.

“Our sector will particularly benefit from being able to return people to work flexibly with the furlough scheme, bearing in mind salon capacity if client numbers are reduced to ensure safety and the need for childcare arrangements due to schools not fully reopening.   Employers can start working out their staffing rotas and begin having these conversations ready for when the government says it is safe for hair salons, beauty salons and barbershops to re-open.” 

Find out more information about these two announcements on the government website.

For more information and FAQs, please visit www.nhbf.co.uk/coronavirus and follow the National Hair & Beauty Federation on social at @nhbfsocial.