Dear All,
The Weekly News and Covid 19 update is below.
Have a good week and stay safe.
Gordon Polson – Chief Executive
Federation of Bakers Ltd
Chief Executive’s Weekly News for 1st June 2020
Test and Trace: Following the governments announcment there has been widespread concern of the possible impact this could have on many businesses including those in food and drink. We have asked for some recognition in the tracing questions relating to the place of work of the measures businesses have put in place to make the workplace Covid 19 Ready. It is understood the guidance to tacers is being rewrtitten and we hope to see some announcment of these changes later this week.
CBI Covid 19 Roundup: Here is some of the progress we have seen over the course of the last week:
On Thursday, the Prime Minister announced that the five tests required to ease lockdown restrictions have been met, and we received confirmation that Phase 2 of the restart began today (in England). From today, up to six people will be allowed to meet outside in private gardens and other private outdoor spaces, provided those from different households continue to observe social distancing rules. The announcement of Phase 2 was supported by the launch of the Test and Trace system, now live in England, Scotland, and Northern Ireland. This is a hugely important step and provides ability to target responses and enable the government to move from UK-wide lockdown decisions to more locally focused measures, as appropriate.
The Prime Minister also announced that from 15th June, all non-essential retail will open, subject to continued progress on the R infection rate and premises being Covid-secure. To support this, the government issued new business guidance containing three key steps non-essential firms must take:
- Display a notice in the workplace showing they have followed government guidance and confirming – amongst other critical measures – that they have carried out a COVID-19 risk assessment and shared results with employees.
- Take precautions with the use and cleaning of customer fitting rooms, as well as in dealing with clothes that have been tried on.
- Implement steps to limit, and mitigate the risks associated with, the handling of goods.
- Your feedback on the guidance has, as ever, been invaluable. On the positives, it’s clear the guidance meets the CBI’s ask for ‘flexibility within a framework,’ as well as building on good practice we have seen established during the lockdown. However, challenges remain. These include clarity on the use of face-coverings by staff and customers, and the thorny issue of employer liability if virus cases are confirmed on site.
On the Job Retention Scheme, the Chancellor announced on Friday that from 1st July, businesses will be given the flexibility to bring furloughed employees back part-time. This is a month earlier than previously announced and will help more employees to return to work gradually and safely. We also heard that, from August, the level of government support provided through the JSR will start to be tapered. Employees will continue to receive 80% of their salary while they are unable to work, but after the end of July businesses will be asked to contribute a portion of this. The government’s support throughout the lockdown so far has been a lifeline for many, and these changes will ensure the scheme stays effective as we begin a cautious recovery. However, previously viable firms not able to open until later, particularly in leisure, hospitality and the creative industries, may need further assistance in the coming months.
Turning to access to finance, on Friday the Chancellor also announced an extension to the Self-Employment Income Support Scheme which has so far seen 2.3 million claims worth £6.8 billion. Those eligible will now be able to claim a second and final grant in August capped at £6,570, meaning vital support for those self-employed will continue during this vital restart phase. Last Tuesday, we had the latest lending figures from the Treasury showing approximately £27 billion has now been lent to businesses across the country. For small businesses, £18.49 billion has been lent through the Bounce Back Loans, with almost 80% of applications being approved. For SMEs, £8.15 billion was lent though CBILS, with an approval rate of approx. 50%, and for mid-size firms, just under £360 million has been lent via CLBILS, with around 30% of applications approved.
While these numbers are moving in the right direction, concern is increasing around eligibility issues relating to undertakings in difficulty criteria. The application of the EU rules, not designed for these unprecedented times, is preventing high growth firms and those businesses with more complex structures from accessing the help they need. Alongside this, non-bank and fintech lenders are being accredited onto the loan schemes at pace, but many still do not have access to the Bank of England Term Funding Scheme. Without the right capital supply to issue lending they will not be able to maintain the flow of finance to the 30% of UK SMEs they collectively serve. We are working with the Treasury to find solutions to both issues as quickly as possible.
Finally, on the government’s 14-day quarantine policy for people arriving to the UK from abroad, businesses have fed back that clarity is needed in the following four areas:
- How the exemptions align to specific professions – eg. which types of engineers and technicians qualify as ‘workers with specialist technical skills’ required for essential or emergency works?
- Who makes the decisions and enforces – eg. are decisions subject to interpretation by Border Force officers?
- What does the government consider as appropriate accommodation for self-isolation – eg. does staying at a relative’s house in the UK qualify?
- What criteria will be used to inform the 3-week review?
Alongside clarification on these issues, businesses are keen to understand the scope for air bridges and/or international travel corridors to be established with strategically important low infection-rate countries. Businesses would also like to see a firm commitment from government, that it will work with entry ports to roll out quick and effective testing procedures.
HMRC Guidance on Furloughing
Flexible furloughing
From 1 July 2020, you’ll have the flexibility to bring previously furloughed employees back to work part-time – with the government continuing to pay 80% of wages for any of their normal hours they do not work up until the end of August. This flexibility comes a month earlier than previously announced to help people get back to work.
You can decide the hours and shift patterns that your employees will work on their return and you will be responsible for paying their wages in full while working. This means that employees can work as much or as little as your business needs, with no minimum time that you can furlough staff for.
Any working hours arrangement that you agree with your employee must cover at least one week and be confirmed to the employee in writing. When claiming the CJRS grant for furloughed hours, you will need to report and claim for a minimum period of a week. You can choose to make claims for longer periods such as on monthly or two weekly cycles if you prefer. You will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.
If your employees are unable to return to work, or you do not have work for them to do, they can remain on furlough and you can continue to claim the grant for their full hours under the existing rules.
Employer contributions
From August, the government grant provided through the job retention scheme will be slowly tapered.
- in June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICs) and pension contributions for the hours the employee doesn’t work – employers will have to pay employees for the hours they work
- in August, the government will continue to pay 80% of wages up to a cap of £2,500 but employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs that they would have incurred if the employee had not been furloughed
- in September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500
- in October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500
- the cap on the furlough grant will be proportional to the hours not worked.
If you are a smaller employer, some or all of your employer NIC bills will be covered by the Employment Allowance, so you should not be significantly impacted by that part of the tapering of the government contribution.
Around a quarter of CJRS monthly claims relate to wages that are below the threshold where employer NICs and auto enrolment contributions are due, and so no employer contribution will be required for these furloughed employees in August.
Important dates
It’s important to note that the scheme will close to new entrants from 30 June. From this point onwards, you will only be able to furlough employees that you have furloughed for a full three-week period prior to 30 June.
This means that the final date that you can furlough an employee for the first time will be 10 June for the current three-week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.
Guidance and support
Further support for employers and agents on how to calculate claims with this extra flexibility will be available by 12 June, including webinars and detailed online guidance. For information about how to claim, go to GOV.UK and search ‘Coronavirus Job Retention Scheme’. Please do not call us for more information, everything you need to know about this scheme will be published online on GOV.UK.
Protect yourself from scams
Stay vigilant about scams, which may mimic government messages as a way of appearing authentic and unthreatening. Search ‘scams’ on GOV.UK for information on how to recognise genuine HMRC contact. You can also forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599.
T-2 and HT-2: The EU Commission has tabled a new working document on MLs for T-2 and HT-2 toxin in cereals and cereals products. As part of the EU member states agricultural contaminants working group meeting held on 15 May 2020.
Acrylamide: The EU Commission has written to stakeholder organisations to inform that discussions have started with EU member states on the establishment of MLs in foods (MLs discussions have already been finalised for infant foods). Additionally the Commission has started a review of the benchmark levels for acrylamide which are listed under Regulation (EU) 2018/2157. The review will look at the descriptions of the food categories, potential for lowering of existing values, and may also consider the setting of additional regulatory (benchmark and/or MLs) for food categories not yet covered by the Regulation.
The Commission intends to hold a discussion with EU member states on this topic as part of the next meeting of the working group on industrial and environmental contaminants scheduled for 19 June 2020.
3-MCPD Esters: Final text on MLs for 3-MCPD-esters has been presented to the European Council for approval.
The text has now been sent to the European Council for final approval (on 15 May 2020). Assuming there are no issues with the progress of the text, this should be translated and published during the summer period and will apply from 1 January 2021
Pesticides: The EU Commission has issued a Staff Working Document on the REFIT Evaluation of the EU legislation on plant protection products and pesticides residues.
This report focuses on the implementation and functioning of both the PPP and Maximum Residue Limits (MRLs) regulations in all EU member states since their applicability in June 2011 and September 2008. It proposes actions to enhance the implementation of the Regulations in order to simplify and/or strengthen the current regulatory framework.
The report concludes that Regulations are mostly coherent and consistent, both internally within and between the Regulations, and externally with other EU legislation and international rules – but efficiency stands out as the critical area requiring attention. Due to a lack of resources and capacity in the member states, most of the procedures are suffering from severe delays, in particular those related to the renewal of approval of active substances and the authorisation of PPP containing approved substances, which in turn negatively affects their effectiveness. The immediate focus for follow-up of this evaluation will be on improving the implementation of the existing legislative framework. Sixteen areas have been identified where implementation in the short and medium term could be improved.
Glyphosate: Austria has formally notified its intention to ban plant protection products containing glyphosate.
On 18 May 2020, the Austrian Government notified a Federal Act amending the 2011 Plant Protection Products Act via the EU’s TRIS system. The new text reads that “the placing on the market of plant protection products containing the active substance glyphosate is prohibited in accordance with the precautionary principle”
The deadline for EU member states to respond (standstill period) is 19 August 2020.
Multiple Pesticides: EFSA has published the results of two pilot assessments on the risks posed to humans by residues of multiple pesticides in food. The pilot assessments investigated the Cumulative dietary risk characterisation of pesticides that have chronic effects on the thyroid and the Cumulative dietary risk characterisation of pesticides that have acute effects on the nervous system. Also published is an FAQ giving a summary of the work done, result, methodology and how the data may be used to consider regulatory thresholds. The results showed that cumulative exposure in both studies did not reach the threshold for regulatory consideration for all population groups
| A message from your Network |
| Practical ideas to make your business COVID secure – webinar – 17 June 2020 @ 11.30 am
The Food & Drink Industries group are pleased to present this practical session for its members and others working in this sector. Pamela Brown, Head of Health and Safety at Allied Bakeries will cover: Protecting your sites: • approach to contractors/visitors Practical Controls on site • Approaches to hierarchy of control Planning and communication • Approach to planning/ongoing meetings The future
To book on this free to attend webinar you will need to register online. Once registered, you will be sent an email with all the necessary details. If you have any questions about the webinar, please contact Dimple Chauhan on dimple.chauhan@iosh.com who will be able to assist. Best wishes Andy Melachrino, Chair |