Will £1 Billion in Covid Grants Curb The Christmas Crisis?

The government have announced a new wave of Covid grants to protect the hospitality and leisure industry in the wake of the omicron variant. But is it enough?

Covid grants
Covid Grants

(3 minute read)

The Case for Covid Grants

The emergence of the Omicron Covid 19 variant has wreaked havoc in industries across the country.

In particular, the hospitality and leisure industry.

Hospitality UK report that businesses lost 40-60% of December trade this year. This is a huge loss as December is often the busiest month.

In response, Rishi Sunak has announced a new wave of support for some of the most at-risk businesses.

The government has yet to reveal start dates. However, many expect the covid grants to become available in January 2022.

New Business Grants

This grant gives up to £6,000 in relief for businesses to recover from damage caused by the recent spread of Covid 19.

The support you can claim depends on the rateable value of your premises:

Rateable ValueGrant Available
£0 – £15,000£2,700
£15,000 – £51,000£4,000
More than £51,000£6,000

Altogether, the government are awarding £683 and around 200,000 businesses will be eligible.

These grants will be awarded at the discretion of local councils to applying businesses.

Details are currently scarce as applications have yet to open, however, many predict that the process will be similar to past Covid grants.

Additional Restrictions Grant (ARG)

The ARG was originally set up last year to support businesses that were severely impacted by Covid but fell outside existing Covid grants.

In addition to the £250 million already allocated to the fund, the government have announced an extra £102 million will be added to the pot.

This grant provides support for businesses outside the hospitality and leisure industry, which are vital for that industry to function.

For example, businesses involved in the supply chains necessary for the industry.

Funds will be awarded at the discretion of local authorities.

Statutory Sick Pay Rebate Scheme (SSPRS)

The SSPRS originally ended in September 2021 but is now returning from 21st December.

Small and medium businesses (with less than 250 employees) can claim back sick pay costs for Covid-related absences.

in addition to Covid grants, you can be reimbursed for up to two weeks of Statutory Sick Pay per employee and will be able to make retroactive claims from mid-January 2022.

However, your business must be based in the UK and you must have set up payroll by 30th November 2021.

Culture Recovery Fund

£30 million will be invested in the Culture Recovery Fund.

The fund promotes cultural organisations and events in England. This includes theatres, orchestras and museums.

You can claim this until March 2022.

Covid Grants

The past two years have been difficult for many businesses. Despite this, the number of businesses becoming insolvent has fallen.

This support from government is a vital lifeline for many businesses for the coming year.

Call us at 01772 788200 or send us a query below to find out how we can help you as we move into 2022.

Kind regards Ilyas