£750 million coronavirus funding for frontline charities
On 8th April the Chancellor announced a £750m package to provide financial support to charities during the coronavirus pandemic. We are still waiting to hear the details. Here’s what we know so far:
- A total of £750 million will be made available for frontline charities across the UK.
- Out this pot, £360 million will go to charities directly, including St John’s Ambulance, Citizens Advice, hospices and organisations helping victims of domestic abuse.
- £370 million of the funding has been designated for smaller charities working with vulnerable people. This will be distributed through the National Lottery Community Fund.
- The Government will match donations to the National Emergencies Trust as part of the BBC’s Big Night In fundraiser later this month, pledging a minimum of £20 million.When further details are available, we will advise on eligibility and the application process.
Coronavirus Job Retention scheme
The Government scheme applies to all UK employers with a PAYE scheme (including charities and Community Interest Companies) to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis. The grant from HMRC covers wages equal to the lower of 80% of the employee’s regular salary or £2,500 per month, plus the associated employer NI and pension (minimum automatic enrolment) contributions.
For full details of the scheme see the Government guidance. Additional information is available from ACAS and CIPD.
For advice tailored to the voluntary sector, the Charity Finance Group has published a thorough Q & A to help charities better understand how the furlough scheme operates.
Financial support for businesses during coronavirus (Covid-19)
The Government has introduced a package of measures to assist businesses, some of which may also be applicable to charities. See the guidance here and the Charity Tax group’s Coronavirus information hub. You can also use the government’s business support finder tool.
The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the current rate of SSP that they pay to current or former employees for periods of sickness starting on or after 13 March 2020.
The Association of Education Business Professionals has produced a useful checklist which you can use to review your eligibility for Government-funded business support during the COVID-19 pandemic.
While not specifically for the voluntary sector, the checklist covers the following areas which may be applicable to your organisation:
- Income and employment support, including Job Retention Scheme
- Business rates
- Grants and finances