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Chancellor pledges 'unprecedented' economy support plan

The Chancellor Rishi Sunak has announced a range of measures to protect businesses and workers from economic effects of Coronavirus (COVID-19).
Children can play together, but social distancing applies to children, as well as adults
Children can play together, but social distancing applies to children, as well as adults

The measures announced during the Prime Minister’s daily press conferences include: 

  • A grant for companies and organisations to cover the wages of staff who are not working due to shutdowns, but who haven’t been laid off. The grant from HMRC will cover 80 per cent of the salaries of retained workers, up to £2,500 a month
  • Deferring VAT payments for businesses for the next quarter.
  • An extension of the coronavirus business interruption loan scheme to be interest free for 12 months (up from six months).
  • An increase to the universal credit allowance by £1,000 for the next 12 months. This means universal credit payments will be paid at an equivalent rate to statutory sick pay.

Neil Leitch, chief executive of the Early Years Alliance said the Government should be commended for taking these ‘important steps’ that will make a huge difference to providers.

This is an incredibly significant announcement and will hugely welcomed by childcare providers preparing to close - either partially or fully - next week.

‘With many still working out exactly how many children will be eligible for care as of Monday, and in turn, how many staff they will need, it is incredibly reassuring to know that providers will be able to continue to pay staff who are not needed to work during this period up to 80 per cent of their wages for the next three months.

‘This, alongside the postponement of VAT payments until June, will make a huge difference to helping providers weather this storm and the Government should be commended for taking these important steps.

'That said, we recognise that self-employed childminders will not be enjoying the same feeling of relief that the rest of the sector will and so we will continue to push for more support for this vital part of the childcare sector.'

 

'Play dates'

During the press conference, the deputy chief medical officer Jenny Harries also stressed the importance of maintaining physical and mental health, but said children should ‘cut right down on social connections’.

In response to a question about whether children should play together or go on play dates, she said that social distancing applies to children, as well as the rest of us.

She explained that children within families would have the same sort of exposure risk, so it was perfectly ok for them to play together, and  ‘kick a ball around’.

For children playing outside together, there was a safety and safeguarding issue, so there should be appropriate supervision. For example, children should stay two metres apart on a bike ride.

She also said that children should have their own equipment and wash their hands regularly.

‘I very much want children to be exercising, but not in groups. Exercising is fine, but cut right down on social connections'.

For example, do not share car rides with other families, she added.