England announced a lockdown that required all non-essential businesses (including hair and beauty) to close their doors for four weeks.
To help you get the support you need during this uncertain time, we’ve gathered some details about the different government financial support measures available across the UK.
What’s covered
- Furlough Scheme extended
- Self-Employed Income Scheme extended
- Other financial assistance available
- Information on current national restrictions
Furlough scheme extended
The UK-wide furlough scheme (Job Retention Scheme) was extended to support businesses.
You can bring furloughed employees back to work on a part-time basis, as long as they can work from home, or furlough them full-time. Employers must pay National Insurance and employer pension contributions. Employees will receive 80% of their salary for hours not worked up to a maximum of £2,500.
For more details on the Coronavirus Job Retention Scheme or other financial support available to you, check out the Government website.
Self-Employed Income Scheme extended
The government offered two grants, each available for three-month periods. The online service for making claims became available.
- The first grant covered three months. The government provided a taxable grant of 55% of average monthly trading profits, paid out in a single instalment and capped at £5,160 in total.
- The grant for November was an increase on the previously announced level of 40% of trading profits to 80%. This returned to 40% for the following two months, making the total amount of the grant increase from 40% to 55% of trading profits for the period.
- The second grant covered a separate three-month period. The government had not initially announced the grant value.
Other financial assistance available
Salons or barbershops forced to close in England due to local or national restrictions are eligible for the following:
- For properties with a rateable value of £15k or under: grants of £1,334 per month, or £667 every two weeks.
- For properties with a rateable value of between £15k-£51k: grants of £2,000 per month, or £1,000 every two weeks.
- For properties with a rateable value of £51k or over: grants of £3,000 per month, or £1,500 every two weeks.
Visit your local authority’s website to find out how to apply.
£1.1bn is also being distributed to local authorities so they can make one-off payments to help support businesses.
Coronavirus loan schemes extended
The government’s Bounce Back Loan and Business Interruption Loan schemes were extended and applications were accepted within a specific period.
England: National restrictions
All personal care businesses had to close in line with government restrictions for a defined period. This included hair salons, barbershops, beauty salons, spas, massage parlours, non-medical acupuncture and tanning salons.
Mobile hair and beauty services were also required to close.
Find out more on the government website.
Wales: Current restrictions
A two-week ‘fire break’ was introduced in Wales requiring close contact services, including salons and barbershops, to close temporarily. Mobile hairdressers and therapists were also not permitted to operate during this period.
The Welsh Government has published FAQs about the fire break.
Scotland: Current restrictions
A five-tier system of coronavirus restrictions was introduced in Scotland. The levels are zero to four.
Effect on hair and beauty
Level 0
- Salons and barbershops can open.
- Mobile close contact services are permitted including both hair and beauty.
Level 1
- Salons and barbershops can open.
- Mobile close contact services are permitted including both hair and beauty.
Levels 2 and 3
- Salons and barbershops can open.
- Mobile hairdressing and barbering can operate.
- Close contact services delivered from a salon, shop or other static sites such as a home treatment room can operate.
- All other types of mobile close contact services are not permitted.
- You can double-check whether or not your business can open by checking which rules apply in your local area via the Scottish Government website.
Level 4
- Salons and barbershops must close.
- Mobile close contact services are not permitted
Find out which level your area is in.
Find out more on the Scottish Government website.
Northern Ireland: Current restrictions
Close contact services such as hairdressers, barbers and beauty therapists were closed for a four-week period as part of restrictions. Mobile hairdressers, beauty therapists and make-up artists were not allowed to work in clients’ homes.
Find out more on the Northern Ireland Executive website.
Please note, we referred to the following sources when writing this article:
Gov.uk, nidirect.gov.uk, Gov.Wales, Gov.Scot
And we always recommend following the NHBF’s updates, if you don’t already.
FAQs
How much financial support can you claim if your salon is forced to close?
You can receive up to £3,000 per month or £1,500 every two weeks if your property has a rateable value of £51k or over. Properties with a rateable value between £15k-£51k can claim £2,000 per month or £1,000 every two weeks, and those with a rateable value of £15k or under are eligible for £1,334 per month or £667 every two weeks.
What does the furlough scheme cover for salon employees?
The furlough scheme covers 80% of employees’ salary for hours not worked, up to a maximum of £2,500. Employers must continue to pay National Insurance and employer pension contributions. Staff can be brought back part-time or furloughed full-time if working from home isn’t possible.
How much can self-employed salon professionals claim under the income support scheme?
Self-employed professionals can claim a taxable grant of 55% of average monthly trading profits for a three-month period, capped at £5,160. For November, the grant temporarily increased to 80% of trading profits, before returning to 40%.
When do you need to close your salon under national restrictions in England?
You must close your salon during periods of national restrictions, with closures lasting four weeks as previously announced. All personal care businesses, including mobile hair and beauty services, are required to shut during these times by law.
Which services can you offer at each restriction level in Scotland?
In Level 0 and 1, salons and mobile services can operate fully. In Levels 2 and 3, salons and mobile hairdressing can operate, but other mobile close contact services are not permitted. At Level 4, all salons and mobile close contact services must close.
