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What will be the added cost to business of furloughing staff from 1 July 2021?

Similar to the position for claims between 1 August 2020 and 31 October 2020, for claims between 1 July 2021 and 30 September 2021 there will be a cost to businesses of furloughing staff, which will gradually increase until the scheme closes at the end of September as follows.

  • From 1 July 2021 employers will be required to contribute 10% of wages, with the Government contributing 70%.
  • From 1 August 2021, the employer contribution increases to 20% and the Government will contribute 60%.
  • 30 September 2021: scheme closes.

Employees will continue to receive 80% of their current wages, up to £2,500 a month.

 

Related FAQs

Reductions in salary

An obvious cost cutting measure is to reduce salaries, either temporarily or permanently. If you are to seek a reduction in salaries, this should be done fairly – either across the board or by selecting teams/individuals based on objective business reasons.

Note that this cannot be imposed without significant risk. Without agreement, this would need fair selection and consultation.

Can I progress an application for EIA development?

Where a development is considered to be “EIA development” (being development where an Environmental Impact Assessment or Environmental Statement is required to be submitted) there are additional statutory publicity and notice requirements over and above the requirements for a standard planning application. Regulations usually require that the environmental statement is to be made available for inspection by the public at all reasonable hours at an address in the locality for a period of at least 30 days. Copies of the environmental statement are also to be made available for people to take away from that address. This clearly requires physical copies to be available at a specified location for a prolonged period of time, which may prove problematic during the current health crisis.

New regulations came into effect on 14 May 2020 which will temporarily suspend the above requirements and will instead require the Environmental Statement to be available for inspection online. The applicant must however provide a certificate to the Local Planning Authority stating what steps have been undertaken to bring the application (and the Environmental Statement) to the attention of people who are likely to have an interest and why it considers that such steps were reasonable.

What payments can be included in the claim for a grant?

You can claim for regular payments you are obliged to pay staff such as non-discretionary overtime, non-discretionary fees, non-discretionary commission and piece-time payments. Overtime in this context is referred to as ‘past overtime’ in the updated guidance which would suggest that you should use the variable pay calculation (see FAQ above) for those who regularly carry out overtime.

Should I continue to carry out housing inspections during the coronavirus outbreak?

As the pandemic progresses, more and more people will be forced to self-isolate and, inevitably, both tenants and staff will be affected. Put plans in place to mitigate the impact that this may have, particularly regarding staff shortages. The most important focus here should be communication.

The Covid-19 outbreak will affect the pace of everyday life and delays will be expected. Rather than allowing the pandemic to take over completely, it is important to maintain open communication with tenants as much as possible and inform them of any front-facing challenges that you may face.

The Protocol does envisage that delays may occur and allows for some degree of flexibility. Whilst all efforts should be made to conduct inspections where practical and possible, it should be expected by all parties that timescales will be extended during this crisis. It is fundamental, however, that all changes made to standard practice are communicated and explained to tenants to manage expectations.

Similar flexibility should be afforded to tenants. As households are required to isolate it will not always be possible to gain access to properties as would usually be expected and required. Likewise, vulnerable people will wish to protect themselves and their families and may refuse access on this basis. During this period, a degree of understanding must be exercised and concessions made.

Inspections may be delayed if anyone in the household has  symptoms. A questionnaire should be prepared for those visiting properties to assess so far as possible the risk; Personal Protective Equipment should be issued to those visiting, and government guidelines followed.

How may proceedings change after Covid-19?

During the COVID-19 global pandemic, trials and hearings have been mostly conducted over Skype for Business and various other online platforms. Looking forward to the future, what we have experienced during the lock-down may continue and we believe will make litigation a more streamlined, user friendly experience for litigants.

One example of a regime which has been introduced is hybrid trials for lower value claims. Hybrid trials allow for parties and their witnesses to be linked into the court room by video link, whilst the judge and advocates are present in court. This makes it easier and frees up more time for witnesses, which would otherwise be spent in travel and waiting time, especially for those with other commitments.

With hybrid trials, clients still get a full legal experience and the judge will still apply normal legal principles during the trial. The procedure for the case is the same, both leading up to the trial or hearing and during the case itself; except without the need to physically attend court. It may also mean that there will be less of a backlog arising from the current crisis with cases continuing to be heard, allowing for matters to be listed earlier and a quicker outcome for the parties involved.

The shift to the use of online platforms may prove more practical for all those involved in legal matters. Interim hearings can be heard remotely resulting in a time and cost saving for litigants. Even for the final hearing only the legal representatives need to attend court – again resulting in time and cost savings for all concerned.