MHCLG issues guidance on claiming coronavirus (COVID-19) related compensation

MHCLG issues guidance on claiming coronavirus (COVID-19) related compensation

The Ministry of Housing, Communities & Local Government (MHCLG) has published guidance for local authorities in England on how to access the local government income compensation scheme for lost sales, fees and charges resulting from the coronavirus (COVID-19) pandemic. This one-off income loss scheme should help compensate for irrecoverable and unavoidable loss generated in the delivery of services during the 2020–2021 financial year. Thanks to the scheme, authorities will absorb losses of up to 5% of their planned 2020–2021 sales, fees and charges income, with the government compensating them for 75p in every pound of relevant loss thereafter. The guidance sets out principles for determining which losses are eligible, as well as examples on who can access the scheme.

The principles include that:

• the income is transactional income from customer and client receipts, generated from the delivery of goods and services

• the income has been unavoidably lost and will not be recovered in this financial year as a result of the outbreak of coronavirus and subsequent reductions in economic activity

• compensation will be based on net losses—where a local authority has reduced expenditure or has received other compensation, compensation will only be provided for the residual loss

Source: Local government income compensation scheme for lost sales, fees and charges

Subscription Form

Related Articles:
Latest Articles:

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login