This update covers the latest government announcements about:
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
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.”