The NHBF has welcomed the latest announcement from the chancellor, Rishi Sunak, on Friday, 30th May, providing more details on the next phase of the Government’s Coronavirus Job Retention Scheme.
Throughout 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.
From July 1, employers can bring furloughed staff back on a part-time basis, provided they pay the wages for the hours the employee works. Employers will still be able to claim under the scheme for the hours not worked.
In August, although the government will continue to pay 80% of wages up to £2,500, employers will be required to pay National Insurance and pension contributions for the hours the employee does not work. In September and moving on to October, the government payment will drop to 70%, and then on to 60% for the hours employees do not work. Employers will need to make up the amount to 80% during these months and pay National Insurance and pension contributions for the hours the employee does not work.
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.
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.”
Keep up to date with the NHBF here: www.nhbf.co.uk/coronavirus