140,000 firms apply for Coronavirus ‘furlough’ scheme in first day
More than 140,000 firms nationwide have applied for funding from the government’s Job Retention (furlough) Scheme in the first day of it being live, Chancellor Rishi Sunak has announced.
The scheme was launched yesterday morning as part of the government’s continued response to the COVID-19 outbreak. It hopes to provide financial relief for UK businesses by covering 80% of the wages of ‘furloughed employees’ during the lockdown period.
What is ‘furlough’?
Furlough is a term of leave granted to an employee in order to meet special circumstances for themselves, or their employer. During the COVID-19 outbreak, many companies have opted to furlough employees in order to maintain financial stability. Others, including businesses in the hospitality sector, have been left with no choice in the matter, as the government last month ordered that they close their doors for the foreseeable future.
While on furlough leave, employees remain in formal employment, but have their usual working responsibilities put on hold. They will be paid a minimum of 80% of their average monthly wage, up to a cap of £2500, which their employer may claim back from the government through the Coronavirus Job Retention Scheme.
In the daily COVID-19 press conference at Downing Street yesterday evening, the Chancellor said:
“Over 140,000 firms have applied, and the grants they will receive will help pay the wages of more than a million people.”
Often, those on furlough, who are covered by the government’s Job Retention initiative, would otherwise have been at risk of losing their job. This makes the scheme a very welcomed, and valuable addition to the government’s economic strategy during the epidemic.
Once they have applied, and their eligibility has been confirmed, companies should expect to receive the funds within six working days. HMRC will continue to provide regular updates on the number of people who have been furloughed.
What other help is available?
For businesses facing financial difficulty during this trying period, there are several options available to gain support. These include government-led schemes such as the Coronavirus Business Interruption Loan Scheme (CBLIS), cash grants for certain businesses under the Hospitality, Leisure, and Retail Grant Scheme, and alternative options such as raising finance or considering insolvency procedures.
How we can help
Here at Wilson Field, we have the ability to aid your business during these difficult times through a number of services. With licensed and regulated insolvency practitioners, We offer formal repayment plans (IVA/CVA), administration, liquidation, and a variety of other options. As a finance broker, we can help your business to raise finance to support you through this difficult time, whether this is by applying for the CBILS from the government, or through alternative finance solitons.
To find out more about the services we can offer, visit our coronavirus help centre. For more on the furlough scheme, visit the link below: