DO YOU RUN A CHILDREN'S NURSERY?
Beware of the new furlough rules!
If you operate a Childs Nursery or playground and receive funding from the County, please be aware of the new rules that were introduced by the Government on Friday.
Due to this change in guidance you will now need to calculate the private and state funded proportion of your income to see how you can apply to Furloughing your staff. In some cases you may not be able to Furlough staff.
There is a good illustration on the update which we have copied below to help you:
If a provider’s average monthly income is 40% from DSG and 60% from other income, the provider could claim CJRS support for up to 60% of their paybill.
This would be done by furloughing staff whose usual salary / combined salaries come to no greater than 60% of the provider’s total paybill.
These proportions could change in subsequent furlough applications as a result of DSG income changing (but not where income from parents increased or decreased). For example, if this provider subsequently receives additional DSG income from a local authority as a result of providing additional hours of childcare, such that its new DSG income would represent 55% of its total income in February 2020, then its maximum use of the furlough scheme should, from that point, be reduced to 45% of its paybill.