Coronavirus guide to financial support
Posted: Friday April 3 2020
By: Lisa Vaughan
The Chancellor has introduced various packages of temporary, timely and targeted measures to support people and businesses through this period of disruption caused by COVID-19. This is a simplified guide to the financial support available.
Coronavirus: A guide to the financial support available to individuals and businesses
Job retention scheme
The scheme will reimburse an employer with up to 80% of the pay of an employee who is not working but kept on the payroll (“furloughed”). Up to a maximum of £2,500 per month
Statutory sick pay
Currently £94.25 a week, rising to £95.85 for 2020/21, would be available to employees from day one instead of day four, including for those advised to self-isolate.
From 6 April 2020, for 12 months, the standard allowance in Universal Credit (UC) and the basic element in Working Tax Credit (WTC) will be increased by £20 a week over and above the planned annual uprating.
Further information can be found here.
For the self-employed
Self-employed income support scheme
The scheme is for those people whose income is derived from self-employment. They can secure a taxable direct grant of 80% of their average profit for the three tax years ending with the 2018/19 tax year or a shorter period (even just the 2018/19 tax year) if three years’ accounts are not available. This is subject to a maximum payment of £2500 per month.
To qualify, the 2018/19 profit or average profit for up to three years ending with 2018/19 must not exceed £50,000. Grant to run for three months and payment (representing a cumulative three months’
The income support scheme mentioned earlier, will not be available until June. As a stop gap the Government has said that self-employed people can apply for help via the benefits system.
If someone’s self-employed income dries up, they will be able to claim employment and support allowance (ESA) and/or Universal Credit. The weekly payment for ESA is typically £73.10 a week for those 25 and over, rising to £74.35 in 2020/21). This will be claimable from day one instead of day eight.