The latest on the furlough scheme
What the latest furlough extension means
It's recently been announced that the furlough scheme has been extended again - this time until September 2021.
For many small businesses facing continued uncertainty in the near future, this is excellent news. And here's exactly how the extension will work...
No changes until July
Until July, the government will continue to pay 80% of an employee's wages. That coincides with the stage at which businesses can fully open up, with all restrictions lifted in mid June.
In July, employers will be expected to pay 10% of the hours staff cannot work. This percentage will then increase to 20% during August and September.
The scheme is then scheduled to end from October onwards.
More help for the self-employed
Furthermore, access to grants for those who are self-employed will be widened.
A rumoured 600,000 more sole traders will be eligible for government grants, thanks to a change in the scheme. For anyone that can prove their income has dropped sufficiently during the pandemic, access to a grant of 80% of three months' trading profits, capped at £7500, will be available.
This is welcome news with so many questions remaining about how much consumer confidence will return as lockdowns end.
For detailed information on what government support is available and how to apply for it, head to the official government support page.