Sources of support - Coronavirus
Government has made clear it will do whatever is needed to support the economy and people’s livelihoods through this challenging time. A host of measures have been announced, however we believe that further financial support is still needed.
PACEY is working closely with the Department for Education (DfE) as part of the early years coronavirus task force in England and with Welsh Government via regular government meetings in Wales. These meetings help advise on the support that childminders, nurseries and pre-schools will need in the coming weeks and months - to both support families and remain sustainable, but also to ensure that there is a strong early years and childcare sector that families can rely on when we are all able to return to our normal working lives.
Stay up to date with what PACEY is doing via our news section and social media.
Make sure you area aware of all the financial support available in England and Wales. Use the government's financial support questionnaire to help determine what you are eligible for. Key options and updates to be aware of include:
- Early years and childcare funding - England
The Government will continue to pay funding to local authorities for the free entitlements for 2-, 3- and 4-year-olds, providing reassurance for some early years settings in England. However, in England local authorities can use their entitlement funding differently, redistributing it – in exceptional cases and in a clearly focused and targeted way – in order to secure childcare for the children of critical workers and for vulnerable children, where their usual arrangements are no longer possible.
- Early years and childcare funding - Wales
In Wales, the Welsh Government has announced an update to funding for the Childcare Offer for Wales and the Childcare Assistance Scheme.
- Childcare Provider Grant Childcare providers in Wales can apply for a one-off grant of up to £5,000 to cover loss of income between 1 April 2020 to 30 June 2020. The grant is available to registered childcare settings who have been unable to access other business support schemes offered by the UK and Welsh Governments. The Childcare Provider Grant is open to applications from 24 August 2020 until the fund is fully committed or 31 October 2020, whichever is earlier.
- Business Interruption Loan Scheme
It supports small and medium-sized businesses with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years.
- Business Support Grant Funding
The Government is providing one-off grant funding of up to £10,000 for Local Authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief. PACEY is working to clarify how childcare businesses can access this grant and whether micro-businesses and sole traders such as childminders qualify.
- Self-employment Income Support Scheme (SEISS) enables you to can claim a grant through the coronavirus (COVID-19) Self-employment Income Support Scheme.
- In the first phase, this scheme allowed you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month. More information can be found here. This grant has been extended for an additional three months. Claims for the first grant closed on the 13 July.
- If you’re eligible for the second and final grant, and your business has been adversely affected on or after 14 July 2020 you’ll be able to make a claim from 17 August 2020. You can make a claim for the second grant if you’re eligible, even if you did not make a claim for the first grant. Find out more about the extension to the scheme.
- This second grant will be a taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits, and capped at £6,570 in total. You can claim for the second and final grant even if you did not make a claim for the first grant.
- In Wales for those more newly registered not eligible for the SEISS Welsh Government announced a start-up grant to support new businesses in Wales dealing with the severe impact of Coronavirus, this grant closed on the 4th September. This will provide crucial funding with potential to help newly registered childminders who established their businesses between 1 April 2019 and 1 March 2020, helping them to continue trading through the pandemic.
- Universal Credit
The government have increased the standard allowance in Universal credit (and the basic element in Working Tax Credit) so those in or out of work, on low income and affect by the economic impacts of COVID now can access the welfare system. If you're self-employed and struggling, you can make a claim for Universal Credit while waiting for the grant.
- Business Interruption Loan Scheme
The scheme helps small and medium-sized business to access loans and other kinds of finance up to £5 million. If eligible, the government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.
- Coronavirus Bounce Back Loan Scheme
If your small to medium-sized business (SME) is affected by coronavirus, you may be able to borrow between £2,000 and £50,000 through this scheme. If eligible, the government will guarantee 100% of the loan and for the first 12 months you will not have to pay any fees or interest, or make repayments.
- Coronavirus Job Retention Scheme (furlough)
All UK employers with a PAYE scheme that was created and started on or before 28 February 2020, will be able to access support to continue paying part of their employee's salary for those that would otherwise have been laid off during this crisis. Watch a video from HMRC explaining the scheme. The Welsh Government has also published guidance for childcare settings in Wales related to the Coronavirus Job Retention Scheme. While the scheme will close on 31 October 2020, there will be a number of changes over the coming months as specified below:
- For June and July 2020, employees (including Childminding Assistants) who are not working but kept on payroll, the Government will contribute up to 80% of a worker’s wages of up to £2,500 for the hours the employee is on furlough, as well as employer national insurance contributions (ER NICs) and pension contribution for the hours the employee is on furlough.
- From 1 July 2020, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.
- From 1 August 2020, the level of grant will be reduced each month. To be eligible for the grant employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed. Employers will pay ER NICs and pension contributions for the hours the employee is on furlough.
- From 1 September 2020, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions for the hours the employee is on furlough as well as top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for the time they are furloughed.
- From 1 October 2020, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
- Employment and Support Allowance (ESA) - self employed
If you are self-employed, and unable to work because you are unwell with COVID-19 or have to self-isolate, you will be eligible to apply. This is based on national insurance credits and is payable from day one of sickness. ESA can be claimed on its own or at the same time as Universal Credit.
- Statutory Sick Pay (SSP) - employed staff
If you employ staff who become unwell or have to self-isolate, they will be eligible for SSP for 14 days. They will be able to claim SSP from day one without the need for a doctor’s certificate. Small businesses will be able to reclaim SSP paid for sickness absences relating to coronavirus during the period of the outbreak.
- Mortgage relief
A three month mortgage ‘holiday’ is on offer to those customers struggling to make their mortgage payments through the COVID-19 outbreak. Some banks are also offering further support to those struggling to repay personal loans. Contact your bank or building society to see what they can offer you.
- Rent relief - England
No renter in either social or private accommodation will be forced out of their home. Landlords have to give renters 3 months' notice if they intend to seek possession. This means landlords can't apply to start the court process until after this period. After 3 months if the tenant has not moved a landlord needs to apply to court in order to proceed. Learn more about the government support for landlords and renters. Support for rental costs can be paid through Universal Credit, there is an increased Local Housing Allowance rates to the 30th percentile of marker rents.
- Credit card relief
Some banks and card firms are offering emergency credit limit increases or repayment holidays. Contact your credit card company to see what’s available to you. Do be wary of taking on extra debt at this very challenging time – talk to a non profit debt counsellor if you are worried.
- Business rate relief - England
Following a campaign by the early years sector in England, the government announced business rate relief for nurseries in England.
- Business rate relief - Wales
In Wales, the Welsh Government had previously announced business rate relief for nurseries and in addition to this all childcare providers in Wales with a rateable value of less than £100,000 who also receive 100% Small Business Rates Relief will receive a grant of £10,000.
- Tax support - case by case
HMRC is offering time to pay for outstanding tax bills on a case by case basis. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559. PACEY is currently clarifying whether this is also available for self-employed, sole traders and if not, when will it be.
- Mental health and wellbeing
This world we are living in is stressful, so make sure you are looking after your own personal mental health. There is a variety support via NHS Every Mind Matters, Mind, Public Health England and the Samaritans.
- Recovery Advice for Business Scheme
The scheme, supported by the government and hosted on the Coronavirus spotlight brings together the latest information about the COVID-19 outbreak and is being updated as soon as government announcements are made.
You can also find a variety of information for your setting including support for children, hygiene and prevention advice and the answers to the most common Coronavirus related questions.