A new government scheme to let businesses reclaim sickpay paid out during Covid-19 has been welcomed by Suffolk businesses.

Under a new scheme announced today employers will be able to reclaim the cost of statutory sick pay paid to those who have taken time off work because they have coronavirus or are self-isolating or shielding and cannot work from home.

The measure was announced as part of the budget but will come into force on May 26.

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Small and medium sized businesses – those with less than 250 employees – will be able to claim back the cost of up to two weeks of statutory sick pay. Statutory sick pay is £95.85 per week, so the maximum an employer could receive for one employee’s time off is £191.70.

The period of sickness needs to have started on or after March 13.

The new scheme has been welcomed by Suffolk businesses.

Paul Simon, head of communication and campaigns at the Suffolk Chamber of Commerce, said: “Our members and the wider Suffolk business community will welcome the launch of this scheme. Anything which boosts business cashflow with a minimal amount of bureaucracy will directly assist the county’s SMEs with their plans to reopen or expand their operations in an appropriate manner.”

Therese Coffey, Suffolk Coastal MP and secretary of state for the Department of Work and Pensions, said: “We are committed to supporting Britain’s small and medium businesses through this pandemic with a comprehensive package of support.

“This rebate will put money back in the pockets of millions of employers, ensuring they can hit the ground running as the economy re-opens.”

Angela MacDonald, HMRC’s director general of customer services, said: “Our teams have worked hard to deliver this scheme for employers and their employees, to ensure they get the support they need. We want employers to be secure in the knowledge they will receive help as they care for their staff during this difficult period.”

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Companies that wish to make a claim when the scheme opens should keep a record of all their statutory sick pay payments.

Employees do not have to have a doctors note in order for their employer to claim under the scheme.

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