Beauty salons and spas – Coronavirus Job Retention Scheme extended until October

Update: the UK Government has announced today (May 12) that it will be extending its Coronavirus Job Retention Scheme until the end of October.

The scheme, which was originally meant to end at the end of June, has been extended for another four months. Until the end of July, there will be no changes to the scheme – which sees the Government grant cover 80% of the salary of retained workers, up to the sum of £2,500 per month. 

However, from August to October, the Government will ask employers to start sharing the costs of paying people’s salaries, with more information on this to come at the end of May. Around 7.5 million people in total are now covered by the scheme. 

Chancellor Rishi Sunak said on Twitter: “The job retention scheme will be extended, for four months, until the end of October. By that point, we will have provided eight months of support to British people and businesses. Until the end of July there will be no changes to the scheme whatsoever.

“From August to October the scheme will continue, for all sectors and regions of the UK, but with greater flexibility to support the transition back to work. Employers currently using the scheme will be able to bring furloughed employees back part-time. We will ask employers to start sharing, with the Government, the costs of paying people’s salaries.”

He added: “Further detail will follow by the end of May but I want to assure people one thing won’t change – workers will, through combined efforts of Government and employers, continue to receive the same level of support as they do now, at 80% of their salary, up to £2,500.”  

This news follows the Government’s announcement of its three-phase Covid-19 Recovery Strategy, which won’t see many businesses reopen until June/July – beauty salons could open on July 4

What financial help does the Coronavirus Job Retention Scheme give salon and spa owners until the end of July? 

What other financial support is the Government giving small businesses:

What support did the Budget 2020 outline for salon and spa owners?

Following on from the 2020 Budget the Government announced on March 18 that it has extended the financial support available to beauty salons and spas:

What other help and resources are available for beaut salon and spa owners?

1. “Rescue the hair and beauty salons UK” petition

Among the biggest of these efforts is a widely circulated petition, “Rescue the hair and beauty salons UK”, which has already reached 47,000 signatures and counting, as of March 18.

A number of requests are made in the petition, including a rescue plan package of £2bn to allow banks to release funding immediately, having coronavirus fall under appropriate insurance coverage such as “business interruption” or “civil unrest”, and ensuring landlords cannot claim any breach of non-payment during this time.

Also proposed is a greater amount of time to pay outstanding HMRC debt and emergency funding to cover statutory sick pay.

2. Phorest advice: five things clients can do for your salon

Salon software specialist Phorest has shared a handful of different ways you can ask loyal customers to support you at this time: 

1. Getting valued customers to make positive reviews online about the quality and hygiene of your salon.

2. Make sure clients who enjoyed their experience take photos of the finished results, upload them to Instagram and tag the salon’s page.

3. Ask followers of your social media accounts to keep engaging with their content, as well as sharing Phorest’s own hashtag, #supportyoursalon.

 Read more of Phorest’s suggestions for what your business should be doing during the coronavirus outbreak.

3. Hair & Beauty Charity support 

The Hair & Beauty Charity is raising funds to help those in the industry who are facing extreme financial difficulties. Donate to the charity here, and find out how they may be able to help your business during the coronavirus. As the Hair & Beauty Charity can no longer raise money from its events, it has also launched a relief fund that you can donate on JustGiving

4. Treatwell launches petition

 Treatment booking platform Treatwell has announced its petition to protect and support the hair and beauty industry in response to the COVID-19 pandemic. Its Facebook Group, Behind Closed Doors, is also available for salon owners to share advice and support.

Access advice on managing your mental health as a business owner during the COVID-19 pandemic, and read expert HR and staff advice to follow during the coronavirus.