The Salon Magazine

NHBF points to government financial support schemes

Posted: 15 May 2020 04:40 AM PDT

The National Hair & Beauty Federation has welcomed the news from Chancellor Rishi Sunak about the extension of the furlough scheme until October to support the transition back to work. This was just one of the concerns raised in the NHBF's open letter to Alok Sharma, Secretary of State for Business, Energy and Industrial Strategy, earlier this week.

This news comes alongside the launch of the government's self-employment support scheme, which allows those who are self-employed to claim a taxable grant of 80% of their average monthly trading profits.

Furlough Scheme

The furlough scheme, which was due to finish at the end of June, is currently supporting over a quarter of the UK's workforce, or around 7.5 million people.

There will be no changes to the way the scheme is run and what is on offer until the end of July. Following that, the scheme will continue throughout August, September and October but with more flexibility, including:

Employers will be able to bring back employees part-time from August (at the moment, and until the end of July, the scheme applies only to those who are not working at all).
From July, employees will still get 80% of their wages – but the government will require employers to make a contribution towards the cost of wages during August, September and October. Further details on this are expected.

Self-Employment Support Scheme

The online service for this scheme opens today, Wednesday 13^th May 2020. The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering three months, and capped at £7,500 in total. You can claim if you are self-employed or a member of a partnership.

Bounce-back Loans

"Bounce-back" loans are available for amounts of up to £50,000. The government have promised to guarantee 100% of the loan, and there won't be any fees or interest to pay for the first 12 months. Loan terms will be for up to six years. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

Ian Egerton, president of the NHBF and a salon owner, says, "The bounce-back loan will enable my business, The Stress Exchange, and hopefully others in the same situation, to focus on reopening while rebuilding our income – especially as salons and barbershops may face a drop in takings initially due to the social distancing measures that will probably be continued for a while yet."

NHBF chief executive Hilary Hall says, "Whilst a lot of our Members have been grateful to receive financial support from the government during this time, some are still slipping through the net. We have heard of hair and beauty professionals flouting the lockdown rules to provide at-home services, which is putting public health at risk and risks the government delaying reopening even further. We are urging everyone to ensure they are getting the financial help that they are entitled to by using the government's support finder tool to find what is available, which in some cases may be Universal Credit or Employment and Support Allowance."

The government business Coronavirus support finder can be found here: https://www.gov.uk/business-coronavirus-support-finder

For more information and FAQs, please visit www.nhbf.co.uk/coronavirus and follow the National Hair & Beauty Federation on social at @nhbfsocial.

The post NHBF points to government financial support schemes appeared first on The Salon Magazine.