COVID-19 UPDATE

29th May 2020

 

Dear Member

 

COVID-19 UPDATE

 

Two important announcements were made today:

  • Firstly, in Wales, First Minister, Mark Drakeford, has said today that non-essential retail businesses should prepare for re-opening.  He will announce when they will actually be allowed to open on the 18th June.  Given non-essential retail included AGCs in England we are hopeful our lobbying in Wales will result in the Welsh Government following suit.  We will continue to press for FECs to open as soon after that as possible.
  • Secondly, the chancellor has today provided details of the new rules which will apply to the JRS.  Employers will be required to make contributions to the cost of furloughed employees.  The Scheme will end in October.  Our request, alongside many others, for early flexibility in the scheme, has resulted in the ability to furlough employees part time from 1st July.  The new arrangements in short are:
  • June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
  • August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
  • September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
  • October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.

I have mentioned before that we have lobbied hard for support for our industry supply chain to receive help under the Retail Leisure and Hospitatliy rates relief scheme.  As also mentioned, this has simply not got traction but other schemes have been put in place for discretionary funding in Scotland, Wales and England.  Further guidance has been published for England.  The eligibility criteria clearly allows amusement machine suppliers to apply. The grant is at the discretion of the local authority.  Click here for more details.  https://www.gov.uk/guidance/apply-for-the-coronavirus-local-authority-discretionary-grants-fund

 

Kind regards

John

 

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