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:
- 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.
- 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. The scheme is open until 31 March 2021.
- Recovery Loan Scheme
From April until December 2021 the Recovery Loan Scheme will give businesses of any size access to loans and other kinds of finance up to £10 million per business once the existing Covid-19 loan schemes closes.
- Term loans and overdrafts will be available between £25,001 and £10 million per business
- Finance terms are up to six years for loans. For overdrafts and invoice finance facilities, terms will be up to three years.
- You will be able to apply for a loan if your business is trading in the UK, has been impacted by the coronavirus pandemic but is viable, or would be viable were it not for the pandemic.
- Self-employment Income Support Scheme (SEISS)
Self-employed childminders can claim a grant through the coronavirus (COVID-19) SEISS.
- The SEISS extended to introduce a third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500. The applications for this have now closed.
- A fourth and fifth grant have now been introduced for the SEISS.
- The fourth grant will provide a taxable grant calculated at 80% of three months’ average trading profits, capped at £7,500. Claims will be available from late April 2021 until 31 May 2021. To be eligible you must have traded in both tax years:
- 2019 to 2020 and submitted your tax return by 2 March 2021
- 2020 to 2021.
- The fifth grant will cover May to September with claims opening from late July if you are eligible. The amount of the fifth grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.
- In Wales Welsh Government has made funding available to Local Authorities under the Childcare Provider Support (Cwtch) Grant – Autumn 2020 / Spring 2021. Each Local Authority in Wales will be providing funding to childcare and early years setting who meet the criteria agreed in each Local Authority. Contact your Local Authority childcare team or Family Information Service (FIS) for further information.
- 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 you can get loans and other kinds of finance of up to £5 million for small or medium-sized enterprises or if you’re self-employed. You’re eligible for this scheme if both of the following apply to your business if based in the UK and has a turnover of £45 million or less per year. The scheme is open until 31 March 2021. Find out how to apply for the Coronavirus Business Interruption Loan Scheme.
- Coronavirus Job Retention Scheme (furlough)
This scheme was due to close in March 2021, but has now been extended until 30 September 2021. Find out more.
- For periods starting on or after 1 May 2021, you can claim for employees who were employed on 2 March 2021, as long as you have made a PAYE Real Time Information submission to HMRC between 20 March 2020 and 2 March 2021.
- For periods ended on or before 30 June 2021 you can claim 80% of an employees usual salary for hours not worked, up to a maximum of £2,500 per month.
- From 1 July 2021, the level of grant will be reduced each month and the employer will be asked to contribute towards the cost of your furloughed employees wages.
- Employers will need to pay for employer National Insurance contributions and pensions costs.
- 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
Business rates relief has been extended, so nurseries in England will qualify for 100 per cent business rates relief from 1 April 2021 to 30 June 2021.
- 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.
- 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.