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WORD FROM THE BFBi
Make the most of support initiatives Ruth Evans MBE
Photo by Gerardo Jaconelli
I have been scratching my head thinking what to write about, especially as I have been trying to think of something positive to say, not easy with the current challenges. For BFBi the entire year has been something of a car crash in terms of postponed and cancelled events and upheaval in the ways our members do business. I seem to spend my life on webinars and zoom calls learning about Government initiatives/changes in regulations etc so that I can pass on the information in bite sized pieces so, this is what I detail here – current Government support initiatives to help companies retain a workforce during COVID:
New Job Support Scheme: • Open to small and medium-sized businesses. Large businesses are also eligible, if they can prove their revenue has fallen because of coronavirus. • Employees must have been on payroll since at least 23rd September. They can be moved on and off the scheme, or work different hours. Each working arrangement must cover at least seven days. • Starts on 1 November 2020 and will run for 6 months, until April 2021. • To be eligible, employees must be in a ‘viable job’ where they can work for at least one-third of their normal hours. • For the hours not worked, the government and employer will each pay one-third of the remaining wages. This means the employee will get at least 77% of their pay with Government paying a maximum of 22% of that. • The payment will be based on an employee’s normal salary, with the government contribution capped at £697.92 per month. This is almost the same as the 80% offered under the furlough scheme - but employees have to work at least a third of their hours, instead of none. • Workers cannot be made redundant or put on notice while a Jobs Support Scheme grant is being claimed on their behalf.
What other jobs help is on offer? • £1,000 for every furloughed employee kept on until at least the end of January
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• £1,500 for every out-of-work 16-24 year-old given a ‘high quality’ sixmonth work placement (see Kickstarter Scheme below). • £2,000 for every under-25 apprentice taken on until the end of January, or £1,500 for over-25s
Kickstarter Scheme: •Provides funding to employers to create 6 month job placements for 16 to 24 year olds who are currently on Universal Credit and at risk of long term unemployment. •The scheme is subsidised with the Government paying 100% of the agerelevant National Minimum Wage, National Insurance and pension contributions provided young people aged 16-24 are given quality positions with a minimum 25 hours a week. •Employers will be able to top up this wage if they want to, but this will be from their own funds. •If employers need more funding for support, training, uniforms, setup costs and equipment the Government will also pay £1,500 per Kickstart placement. •A referral for the employee has to be made by the Work Coach. Should you have a candidate in mind you will need to talk to your Work Coach to make the appropriate referral. •You do not need to take on an employee now, the last opportunity doesn’t need to filled until end June 2021.
The issue with the Kickstart Scheme is that applications have to be made in groups of 30 and how many employers are in a position to take on 30 employees? However, a trade body can act as a Kickstarter Gateway and BFBi is offering to become a Gateway for employers wishing to benefit from the scheme. If you wish to take on an employee under the Kickstart Scheme and wish to use BFBi as your gateway, or want further information, contact ruth.evans@bfbi.org.uk
What Could Q1 2021 Bring? The Federation for Small Businesses has quoted a possible 700,000 businesses going into administration in
Q1 – equating to 3 million jobs. CBI quotes a figure of £35billion of Government loans (Bounce Back and CBILS) that may not be repaid.
These are grim figures but I am a believer in knowing the worst case scenario so we can work out a plan of action and a plan of action is what we need. For many of us in the supply chain, there has not been a great deal of support from Government and time is running out.
Somebody said that ‘Knowledge is Power’. BFBi and other trade associations are here to bring you the knowledge that will help you put a strategy together so please do contact us so that we can best lobby for support and initiatives to obviate the worst case scenario or, at least, give you information to help you make an informed decision as to your next step.
Ruth Evans MBE, BFBi C.E.O.
Established in 1907, BFBi’s membership represents the entire value chain supplying the brewing and beverage industry – from seed geneticists through raw materials, brewhouse and process equipment to dispense, point-ofsale and brewers/distillers. The Association’s objective is to be the foremost trade association providing opportunities for its Members to develop within the brewing, food & beverage industry.
As well as offering many benefits and services to suppliers of raw materials, process and packaging machinery, dispense and point of sale products, BFBi is a Trade Challenge Partner for various overseas exhibitions and owner and organiser of the oldest international brewing and cider Awards in the world. SEE PAGE 66 FOR MORE INFO
BREWING & BEVERAGE INDUSTRIES BUSINESS • Autumn/Winter 2020/21
