Who can claim for furlough when lockdown starts – and rules for self-employed workers

The Government’s extension of much-needed furlough payments in England should have happened a long time ago, political and business leaders say.
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Prime Minister Boris Johnson said the Government will extend furlough payments at 80% to December and for the duration of the new national lockdown measures.

He told a Downing Street press conference that he was sorry about the hardship that businesses have already endured this year.

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He said: “That’s why we are going to extend the furlough system through November. The furlough scheme was a success in the spring and supported people in businesses in a critical time. We will not end it, we will extend furlough until December.”

Chief scientific adviser Sir Patrick Vallance and Chancellor of the Exchequer Rishi Sunak arrive for a media briefing in Downing Street, London, on coronavirus (COVID-19).Chief scientific adviser Sir Patrick Vallance and Chancellor of the Exchequer Rishi Sunak arrive for a media briefing in Downing Street, London, on coronavirus (COVID-19).
Chief scientific adviser Sir Patrick Vallance and Chancellor of the Exchequer Rishi Sunak arrive for a media briefing in Downing Street, London, on coronavirus (COVID-19).

It will have some differences to March in that these measures will be “time-limited”, starting on November 5 and ending on December 2.

This is when the Government will seek to “ease restrictions” and go back into the tiered system.

Furlough rules

- Furlough will be payable at 80% up to a maximum of £2,500 for the duration of the package of tougher national measures. The support will be available across the UK.

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- Business premises forced to close in England will also receive grants worth up to £3,000 per month under a Local Restrictions Support Grant.

- A further £1.1 billion will be given to local authorities – distributed on the basis of £20 per head – for one-off payments to support businesses.

- Furlough will also be open to new entrants for the first time since July 1.

Self employed workers

Self-employed workers could be given additional financial support after the furlough scheme was extended for the duration of the new national lockdown, Michael Gove has hinted.

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The Cabinet Office Minister told BBC One’s The Andrew Marr Show: “The announcement about furlough that was made yesterday was about the extension of a scheme, that would have expired last night, throughout the rest of this month.

“And the Chancellor and his team are looking at every aspect of economic support and more will be said in the days ahead about how we provide it.”

Lockdown

Non-essential retail and hospitality services will be forced to close, while schools stay open during the four-week lockdown.

It means that pubs, cafes, restaurants will shut except for takeaway and delivery services.

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The Government said the extended furlough scheme will see employees receive 80% of their current salary for hours not worked, up to a maximum of £2,500.

Chancellor Rishi Sunak hoped that the furlough scheme, along with a number of changes to support measures would provide “a vital safety net” for people across the UK who are about to face a tough winter.

Boris Johnson

The Prime Minister said: “I’m under no illusions about how difficult this will be for businesses which have already had to endure such hardship this year and I’m truly, truly sorry for that – and that’s why we’re going to extend the furlough system through November.

“The furlough system was a success in the spring, it supported people in businesses in a critical time. We will not end it, we will extend furlough until December.”

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He said the measures would be time-limited from November 5 to December 2, when restrictions would be eased and regions would go back into the tiered system.

He added: “Christmas is going to be different this year, perhaps very different. but it’s my sincere hope and belief that by taking tough action now we can allow families across the country to be together.”

Grants

The Treasury also announced that grants worth up to £3,000 per month are to be handed out for business premises forced which are to close.

There is also £1.1 billion that will go to local authorities for one-off payments to help them support businesses.

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Mortgage payment holidays will no longer end today as previously planned, the Government announced.

Borrowers who have been financially hit by coronavirus and have not yet had a mortgage payment holiday will be entitled to a six-month holiday.

Those who have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file.

The Financial Conduct Authority is to set out more details on Monday.

Business grants are also to be made available for firms who have to shut in England due to local or national restrictions.