Support for businesses through the national lockdown

Jan 6, 2021

Grants for businesses

With a third national lockdown in force across the country, the government announced yesterday the introduction of one-off top up grants for retail, hospitality and leisure businesses, worth between £4,000 and £9,000 per property to help businesses through to the Spring. The one-off grants will work as follows:

• £4,000 for businesses with a rateable value of £15,000 or under

• £6,000 for businesses with a rateable value between £15,000 and £51,000

• £9,000 for businesses with a rateable value of over £51,000

It has also been confirmed that a further £594 million discretionary fund will be made available for Local Authorities to support other businesses who are not eligible for the grants but that may be affected by the restrictions. To access this support, businesses should apply to their Local Authorities.

The new one-off grants come in addition to existing business support schemes, including grants up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.

Extension of the Furlough Scheme

The government’s Coronavirus Job Retention Scheme (Furlough Scheme) remains open to new entrants and has been extended until the end of April 2021. Under the scheme, the government will pay up to 80% of an employee’s normal salary, capped at £2,500 a month.

There is no requirement for employers to contribute to wages, but they are required to pay NICs and pension contributions. Flexible furlough continues to operate, allowing employees to work reduced hours and receive a furlough grant for the hours that they don’t work.

When claiming the grant for furloughed hours, employers will need to report and claim for a minimum period of seven consecutive calendar days. For flexible-furlough, employers will need to report the number of hours the employee works and the hours they would usually be expected to work in a claim period.

For worked hours, employees will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts.

The scheme is open to all employers with a UK bank account and PAYE schemes. Employees are eligible provided they were on their employer’s PAYE payroll before midnight on 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.

As with the original furlough scheme, employees can be on any type of contract, including zero-hour and casual worker agreements.

Under the rules of the scheme, employers will need agreement from employees to be placed on furlough. Employers must ensure that any agreement is consistent with employment, equality and discrimination laws and a written record of the agreement must be kept for at least five years.

If you require any assistance in preparing suitable furlough agreements or require advice on whether your existing furlough agreements are still compliant, please get in touch with our Employment Group on 0118 977 4045 or at employment@herrington-carmichael.com.

This reflects the law at the date of publication and is written as a general guide. It does not contain definitive legal advice, which should be sought as appropriate in relation to a particular matter.

By Tom Hyatt

Trainee Solicitor, Employment Law


Contact us

    The information you submit will be handled in accordance with our privacy policy.

    FREE: Legal Insights and Event News 

    Keep you, your family and / or business up to date on how the law affects you, by subscribing to one of our legal insights.

    Subscribe for free Legal Insights
    & Event updates

    Receive the latest legal developments and professional advice to keep your family and business safe.
    Please choose which list you would like to subscribe to below.

    Please see our privacy policy regarding use of your data.

    Latest Articles

    Top Legal Insights


    Contract Law

    Material Breach of Contract

    What is a ‘material’ breach of contract by a party to a commercial contract? This is a critical issue regularly considered by the courts. What constitutes a material breach and what are the remedies?

    Property Law

    Commercial Lease: The Financial impact on Landlord and Tenant

    Coronavirus (COVID-19) and the restrictions now in place to control its spread, are having a significant effect on many business sectors.

    Divorce and Family Law

    Divorce in Lockdown: Can I get some discreet legal advice?

    We have spoken to clients who are unfortunately experiencing some family issues, and would like to obtain expert legal advice, yet don’t know how...

    Land & Property Dispute

    Restrictive Covenants – The Price of Modification

    Having identified that your land is burdened by a restrictive covenant and for the purposes of this article the covenant in question will be that only one residential building can be erected on the land. What do you do next?

    Wills, Trusts and Probate

    Why is having a will so important?

    It is entirely up to you if and when you want to create a Will, but it is important to be aware of the consequences of not having a Will.

    Award winning legal advice

    We are solicitors in Camberley, Wokingham and London. In 2019, Herrington Carmichael won ‘Property Law Firm of the Year’ at the Thames Valley Business Magazines Property Awards, ‘Best Medium Sized Business’ at the Surrey Heath Business Awards and we were named IR Global’s ‘Member of the Year’. We are ranked as a Leading Firm 2020 by Legal 500 and Alistair McArthur is ranked in Chambers 2020.


    60 St Martins Lane, Covent Garden, London WC2N 4JS 

    +44 (0) 203 755 0557



    Building 2  Watchmoor Park, Riverside Way, Camberley, Surrey  GU15 3YL

    +44 (0)1276 686 222


    Wokingham (Appointment only)

    4 The Courtyard, Denmark Street, Wokingham, Berkshire RG40 2AZ

    +44 (0)118 977 4045


    © 2020 Herrington Carmichael LLP. Registered in England and Wales company number OC322293.

    Herrington Carmichael LLP is authorised and regulated by the Solicitors Regulation Authority.

    Privacy   |   Legal Notices, T&Cs, Complaints Resolution   |   Cookies   |   Client Feedback