Winter Economy Plan
On Thursday 24 September, the Chancellor announced the Winter Economy Plan – the next phase of our planned economic response to coronavirus, following the Prime Minister’s address to the nation.
Support for workers
A new employment scheme – the Job Support Scheme
Under the scheme the Government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand.
The scheme will run for 6 months starting 1 November
To be eligible employees work a minimum of 33% of their hours
For remaining hours not worked, the Government and employer pay 1/3 wages each
So employees working 33% of their hours will receive at least 77% of their pay
Anyone who as of yesterday is employed is eligible
Employers retaining furloughed staff on shorter hours can claim both the Jobs Support Scheme and the Jobs Retention Bonus
This gives businesses who face depressed winter demand the option of keeping employees in a job on shorter hours rather than making them redundant
Greater support for businesses’ cash flow
Greater flexibility for repaying loans through the new ‘Pay As You Grow’ scheme
All borrowers will now have the option to repay their Bounce Back Loans over a longer time period by extending the term of BBLs to ten years
This will reduce their average monthly repayments by almost half
The deadline for new loan applications has been extended until the end of November - this covers:
- the Coronavirus Business Interruption Loan Scheme
- the Coronavirus Large Business Interruption Loan Scheme
- the Future Fund
- Bounce Back Loans
We will work with businesses and lenders to introduce a new loan guarantee scheme from January 2021
Extending the temporary VAT cut for tourism and hospitality until the end of March 2021
Deferring repayments of VAT to support businesses during this period, launching a new scheme to allow businesses who want extra time to pay back the VAT they owe in smaller equal monthly payments, interest-free, until the end of March 2022
More time for self-assessment businesses to pay back - around 1.5 million businesses who pay through income tax self-assessment benefitted from the Self-Assessment Tax Deferral, deferring until to the end of January 2021.
To help them further, the Time To Pay service has been upgraded so that all 11 million self-assessment taxpayers will be able to create a 12-month payment arrangement for up to £30,000 each, and extended till the end of January 2022.
Self Employment Income Support Scheme Grant
- the Government is continuing its support for millions of self-employed individuals by extending the Self Employment Income Support Scheme Grant (SEISS)
- The extension will provide two grants and will last for six months, from November 2020 to April 2021
- Grants will be paid in two lump sum instalments each covering a three month period
- The first grant will cover 3 months’ worth of profits from the start of November until the end of January. It will be worth 20% of average monthly profits and will capped at £1,875 in total.
- An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from February 2021 to the end of April
More information about the Winter Economy Plan can be found at here.
My team and I will be available to provide as much support as we can to anyone across Bishop Auckland who needs our help.
As always, if you need any assistance please contact firstname.lastname@example.org
Stay safe. We are in this together.