UKFT is in constant dialogue with the government and is outlining the latest support available for UK fashion and textile businesses here. We will update this page as new guidance becomes available or the situation changes.

For UKFT members with specific enquiries, please contact info@ukft.org.

What we’ve been doing to support the UK fashion and textile industry during the coronavirus pandemic

UKFT has been representing the needs of UK fashion and textiles to government, liaising with the Cabinet Office on PPE, pushing for more support for “the forgotten middle” and calling for more flexibility in the furlough scheme. We have also been planning for how our industry can return to work, including bigger and better export activities and for a massive increase in the promotion of training and opportunities in the sector.

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UKFT campaigns for “the forgotten middle”

UKFT is urging the government to provide support for individuals or companies that are not eligible for any of the existing Covid-19 related protection schemes.

These include the owners and/or founders of small limited companies who derive their income from a limited company but not through PAYE, the self-employed who have not shown any profits and those who were employed after 28th February.

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Our industry must work together to support each other

The fashion and textile industry has always proved to be extremely resilient and now is the time for us all to work closely together to support and sustain each other. The power of our individual and collective actions, and the support and compassion we show to each other, will offer our businesses a unique advantage as we deal with this unprecedented situation.

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PPE to be zero rated for VAT

From 1 May 2020, PPE purchased by care homes, businesses, charities and individuals to protect against Covid-19 will be free from VAT for a three-month period. The announcement comes after the government also removed import duty from PPE.

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UKFT Statement on PPE

UKFT is working to support the government as it starts to increase the availability of PPE. We have been overwhelmed by the very many offers to help we have received from across the UK fashion and textile community. Many of you have offered to help produce masks and gowns for the NHS and other key workers. There are a number of bottlenecks in the supply chain that government is looking to resolve very quickly and the most import of which is the availability of the correct fabric. It is vital that all PPE is made from the appropriate material otherwise the protection given by items could be compromised.

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Free Vetigraph PPE patterns for scrubs and gowns

UKFT associate member Vetigraph has produced a range of patterns for PPE, including scrubs, gowns, face masks, boiler suits, headwear and plastic face shields in A4, A0, and Vetigraph PLT files, which are available free of charge.

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Government PPE hub

A new hub containing guidance on personal protective equipment (PPE), and infection prevention and control (IPC) is now available, containing information for both health and social care settings and other workers and sectors.

The hub also links to the Cross-government UK-wide PPE plan to ensure that critical PPE is delivered to those on the frontline. This includes a new ‘Make’ strategy of encouraging UK manufacturers to produce PPE.

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Emergency Designer Network supports scrubs production

A group of London-based designers have united to form the Emergency Designer Network (EDN), a volunteer-led enterprise that is galvanising local production to support hospital stocks of key garments such as scrubs.

The scrubs and robes being made by EDN are hospital but not government approved meaning that they adhere to many of the manufacturing guidelines but not all. These garments are not and should not to be used in place of government PPE. Garments are there to support staff and carers offering lower level protection, allowing government backed PPE to go where it is so desperately needed.

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FREE MASKS for UKFT members and manufacturers

UKFT members and manufacturers can apply for 50 free face masks per company to help the UK fashion and textile industry return to work.

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Safe Working Practice – Update on dealing with returns

The government has updated its safe working guidance following feedback. The major change for the fashion and textile sector is that the advice is to store returns for 48 hours before returning them to the shop floor (down from previous advice of 72 hours).

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Retail in England expected to open on 15 June

Fashion retail, fashion designers, tailors and dress makers will be among the retailers that are expected to be able to re-open from the 15^th June. (Scotland, Wales and Northern Ireland will shortly announce their own time lines for the re-opening of retail).

In order for these businesses to reopen they must have undertaken an appropriate Covid-19 risk assessment.

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Issues for UK fashion and textile manufacturers to consider

UKFT has worked with members, our dedicated employment advisor and external stakeholders to produce a checklist of issues for UK fashion and textile manufacturers to consider when planning a return to work.

There is also a template Covid-19 Working Practices Guide, which will help manufacturers implement government advice.

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Introduction of flexible furlough from 1st July

The government has published full details of how the flexible furlough scheme will work. In essence from 1^st July you can bring back any employee for any amount of time and on any work pattern and claim for the CJRS grant for the hours your staff don’t work.

HMRC have issued a new template to be used by companies that will be claiming support for 100 or more employees under the Coronavirus Job Retention Scheme from 1^st July.

The template is available here.

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UPDATE: Coronavirus Job Retention Scheme and flexible furlough

The Coronavirus Job Retention Scheme is changing. Here is the latest update, outlining flexible furlough, the last date for accessing the furlough scheme, changes to the amount of CJRS and an extension of the Self-Employment Income Support Scheme (SEISS).

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Coronavirus Job Retention Scheme and Furlough

The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers, designed to support businesses whose operations have been severely affected by coronavirus (COVID-19).

Employers can claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage.

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£10k cash grant for small businesses

There will be a £10,000 cash grant to the smallest businesses, delivered by local authorities. Small businesses that pay little or no business rates and are eligible for small business rate relief (SBBR) or rural rate relief will be contacted by their local authority – they do not need to apply. The funding will be provided to local authorities in early April.

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£25k grant for small retail, hospitality and leisure businesses

A £25,000 grant will also be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.

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New £617m fund to help ‘the forgotten middle’

The government have announced an additional £617m funding package aimed at small businesses with ongoing fixed property-related costs.

The grants will be administered by local authorities but the government wants the funds to be prioritised for those companies that pay rates indirectly via their landlords. However, local authorities may choose to make payments to other businesses based on local economic need. The allocation of funding will be at the discretion of local authorities.

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Business rates holiday

The government is introducing a business rates holiday for retail, hospitality and leisure businesses for the 2020 to 2021 tax year. For 2020/21 only, certain businesses will receive a 100% discount on business rates. Each local authority will adopt and publish its own scheme and then central Government will reimburse local government. For the fashion and textile sector properties that will benefit from the relief will be occupied premises that are wholly or mainly being used as shops.

The Government consider shops to mean “Premises that are being used for the sale of goods to visiting members of the public”. This includes the following examples: Shops, Charity shops, Furnishing shops and Dry cleaners. In addition, some members may also qualify for the relief if their premises operate as a tourist attraction and if it operates a café/coffee shop. To qualify for the relief, the premises should be wholly or mainly being used for the above qualifying purposes.

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‘Bounce back loans’

Small businesses will be eligible for ‘bounce back loans’ worth up to 25% of the company’s turnover, up to a maximum loan of £50,000.

The government will pay the interest on the loan for the first 12 months and the government will guarantee 100% of the loans.

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Coronavirus Business Interruption Loan Scheme (CBILS)

The Coronavirus Business Interruption Loan Scheme (CBILS) is available for SMEs through more than 40 accredited lenders across the UK. UKFT’s guidance outlines how to access the scheme and eligibility criteria.

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Statutory Sick Pay refund

For businesses with fewer than 250 employees, the cost of providing 14 days of Statutory Sick Pay per employee will be refunded by the government in full. Details on how this scheme will work are due to be published shortly. We will send the information as soon as it becomes available.

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Time To Pay: If you cannot pay your tax bill on time

A dedicated Government helpline has been set up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities. Through this, businesses may be able to agree a bespoke Time to Pay arrangement. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.

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Extension to deadlines for filing Annual Accounts

From 25 March 2020 businesses can apply for a 3-month extension for filing their accounts to allow for the prioritisation of managing the impact of Coronavirus.

Companies will have to apply for the 3-month extension but those citing issues around COVID-19 will be automatically and immediately granted an extension.

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VAT deferment

The government has automatically deferred the payment of VAT to HMRC between 20 March 2020 and 30 June 2020 until April 2021. All UK businesses are eligible, and no applications are required.

UKFT associate member TC Group has advised it expects HMRC will continue to expect businesses to submit VAT returns, although payment is not required. There is no mention so far about direct debit payments. The information available at the time of writing suggests that the payment runs are automatic and, therefore, may be problematic. TC Group advises companies to cancel direct debits for VAT with their bank to make sure no payment is taken.

UKFT members with any questions, please contact info@ukft.org

COVID-19 Corporate Financing Facility (CCFF)

The COVID-19 Corporate Financing Facility (CCFF) helps large businesses affected by coronavirus (COVID-19) through the purchase of their short-term debt.

This scheme will support your company if it’s been affected by a short-term funding squeeze, and allow you to finance your short-term liabilities.

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Changes to UK insolvency law to help companies keep trading

The UK’s insolvency framework will add new restructuring tools to give companies breathing space and support them to keep trading while they explore options for rescue.

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Grant funding scheme for vulnerable supply chains

The Vulnerable Supply Chains Facility (VSCF) initiative offers grants and/or technical assistance of the value between £200,000 and £600,000. It has been established by the Department for International Development (DFID) in partnership with the Department for International Trade.

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Coronavirus and Insurance: Things to consider

UKFT associate member Langton London has outlined a range of things to consider when looking at your business insurance policy in relation to the Coronavirus outbreak. These include Business interruption, Denial of Access, Damage Cover, Homeworking, Unoccupied Premises and Changing/Adapting Business Activity.

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In addition to the support packages for the whole of the UK, the Scottish Government has announced an additional £220 million of support for small businesses and the self-employed.

The new package of measures includes £120 million to extend the Small Business Grant scheme to ensure that, in addition to a 100% grant on the first property, small business rate payers will be eligible to a 75% grant on all subsequent properties.

A further £100 million fund is also being made available to protect self-employed people and viable micro and SME businesses in distress due to COVID. This fund will be channelled through local authorities and enterprise agencies to target newly self-employed people and businesses who are ineligible for other Scottish Government or UK Government schemes.

The £100 million fund to support the self-employed and SMEs announced last week will be broken into three separate funds as follows:

• £34 million: Newly Self-Employed Hardship Fund, managed by Local Authorities, will be allocated to the newly self-employed facing hardship through £2,000 grants
• £20 million: Creative, Tourism & Hospitality Enterprises Hardship Fund, managed by the Enterprise Agencies in partnership with Creative Scotland and VisitScotland for creative, tourism and hospitality companies not in receipt of business rates relief
• £45 million: Pivotal Enterprise Resilience Fund, managed by the Enterprise Agencies for vulnerable SME firms who are vital to the local or national economic foundations of Scotland

The recently self-employed, who are excluded from the UK’s scheme but suffering hardship, will be able to receive £2,000 grants.

For creative, tourism and hospitality companies of up to 50 employees not receiving business rates relief, there will be rapid access £3,000 hardship grants or larger grants up to £25,000 where it can be demonstrated support is needed. The support and larger grants for pivotal SME enterprises will depend on the specific need of the enterprise and be developed by the relevant enterprise agency with wraparound business advice and support.

Government Announce Self-Employed Income Support Scheme

Key details of the Self-Employed Income Support Scheme are as follows:

• A taxable grant of 80% of average weekly profits (calculated over the last three years) up to a maximum of £2,500 a month

To be eligible you must:

• Have trading profits of no more than £50,000 a year
• The majority of your income must come from self-employed work
• Have filed a tax return for 2018/19

The scheme will pay the grant directly to the bank accounts of those eligible for the support. The scheme will run for an initial three months

HMRC is building the mechanism by which the grants will be paid.

Get ready for the Self-Employment Income Support Scheme (SEISS)

The claims service will open on 13 May and those eligible will have the money paid into their bank account by 25 May, or within six working days of completing a claim.

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Coronavirus Job Retention Scheme and Furlough

The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers, designed to support businesses whose operations have been severely affected by coronavirus (COVID-19).

Employers can claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage.

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Holidays during COVID-19

The government has announced their intention to relax the rules around holidays meaning that employees who have not taken all of their statutory annual leave entitlement due to COVID-19 will now be able to carry it over into the next 2 leave years.

The regulations will allow up to 4 weeks of unused leave to be carried into the next 2 leave years.

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Guidance on Sick Pay

The Covid-19 virus is having an impact on many different aspects of business including how employers cope with sick pay. The following advice has been prepared for UKFT by the UKFT Employment Adviser.

When an employee is sick or self-isolating because of Covid-19, Statutory Sick Pay (SSP) is likely to apply and for businesses with fewer than 250 employees, the cost of providing 14 days of statutory sick pay per employee will be refunded by the Government in full.

However, there may be a problem when employees in a completely different area, e.g. warehouse or even a different factory are consequently laid off simply because with another area shut down there is no work for them to do. In this case they would not need to self-isolate and could not claim SSP.

The question of layoff then arises. Some companies will still follow National Agreements which may include the right to layoff, and payments made are either in accordance with the Employment Rights Act for the first five days in any 13 week period, or in accordance with the terms of the National Agreement, whichever is the higher.  However, the overwhelming majority of employment contracts are likely to only have a right to layoff in certain circumstances, such as the failure of supplies or power cuts.

If there is no contractual right to layoff, then an employer doing so is liable to claims of constructive dismissal. Whilst it is expected that most employees would be sensible and understanding about layoff in such circumstances, some employees may be looking for a reason to resign with some form of compensatory payment which would be likely, in the best circumstances, to be at least as much as a redundancy payment. For example, they could have requested redundancy or be in the middle of disciplinary or competence actions. Employers should be well aware of these risks.

It should also be noted that employees who are laid off continuously for four weeks or whose earnings fall below 50% of average for 6 weeks out of 13 are entitled to claim an automatic redundancy payment.

There is more information available on the ACAS website here.

Coronavirus Statutory Sick Pay Rebate Scheme

A new online service to allow employers to recover Statutory Sick Pay (SSP) payments will be launched on May 26^th.

The scheme will allow small and medium-sized employers, with fewer than 250 employees, to apply to HMRC to recover the costs of paying coronavirus-related SSP.

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New Online Service for Isolation Notes

People unable to work for more than seven days because of coronavirus (COVID-19) can obtain an isolation note through a new online service.

Isolation notes will provide employees with evidence for their employers that they have been advised to self-isolate due to coronavirus, either because they have symptoms or they live with someone who has symptoms, and so cannot work.

To get an online isolation note visit https://111.nhs.uk/isolation-note/

After answering a few questions, an isolation note will be emailed to the user. If they don’t have an email address, they can have the note sent to a trusted family member or friend, or directly to their employer. The service can also be used to generate an isolation note on behalf of someone else.

For the first seven days off work, employees can self-certify so they don’t need any evidence for their employer. After that, employers may ask for evidence of sickness absence. Where this is related to having symptoms of coronavirus or living with someone who has symptoms, the isolation note can be used to provide evidence of the advice to self-isolate.

Isolation notes can be obtained without contacting a doctor.

Government Stay at Home Guidance for households with possible coronavirus (COVID-19) infection

It is very important that individuals with symptoms that may be due to coronavirus and their household members stay at home. Staying at home will help control the spread of the virus to friends, the wider community, and particularly the most vulnerable.

Full details can be found here https://www.gov.uk/government/publications/covid-19-stay-at-home-guidance/stay-at-home-guidance-for-households-with-possible-coronavirus-covid-19-infection

Main Messages

• If you live alone and you have symptoms of coronavirus illness (COVID-19), however mild, stay at home for 7 days from when your symptoms started. (The ending isolation section below has more information)
• If you live with others and you are the first in the household to have symptoms of coronavirus, then you must stay at home for 7 days, but all other household members who remain well must stay at home and not leave the house for 14 days. The 14-day period starts from the day when the first person in the house became ill. See the explanatory diagram
• For anyone else in the household who starts displaying symptoms, they need to stay at home for 7 days from when the symptoms appeared, regardless of what day they are on in the original 14 day isolation period. The ending isolation section below has more information, and see the explanatory diagram
• It is likely that people living within a household will infect each other or be infected already. Staying at home for 14 days will greatly reduce the overall amount of infection the household could pass on to others in the community
• If you can, move any vulnerable individuals (such as the elderly and those with underlying health conditions) out of your home, to stay with friends or family for the duration of the home isolation period
• If you cannot move vulnerable people out of your home, stay away from them as much as possible

If you have coronavirus symptoms:

• Do not go to a GP surgery, pharmacy or hospital
• You do not need to contact 111 to tell them you’re staying at home
• Testing for coronavirus is not needed if you’re staying at home
• Plan ahead and ask others for help to ensure that you can successfully stay at home and consider what can be done for vulnerable people in the household
• Ask your employer, friends and family to help you to get the things you need to stay at home
• Wash your hands regularly for 20 seconds, each time using soap and water, or use hand sanitiser
• If you feel you cannot cope with your symptoms at home, or your condition gets worse, or your symptoms do not get better after 7 days, then use the NHS 111 online coronavirus service. If you do not have internet access, call NHS 111. For a medical emergency dial 999

UKFT members with specific employment queries relating to the impact of Covid-19 or any other query related to employment law please email info@ukft.org

UKFT helps fashion and textile companies exhibit at a range of international events including Pitti Uomo, Playtime Paris, Première Vision, Intertextile Shanghai, Heimtexil and Paris Fashion Week. We also provide export grants on behalf of the Department for International Trade.

It is still too early to know with any degree of certainty what will happen at most major fashion and textile tradefairs for the remainder of 2020, although a few key patterns are beginning to emerge.

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If you are committing to a tradeshow in the next few months, it is worth asking the show organiser the following questions:

• When will they make their final viability (go-ahead) decision for the fair?
• What will be their cancellation/postponement policy?
• Will they guarantee to refund all monies in the event of postponement or cancellation?

You may also wish to ask the same questions of your stand constructors and freight companies and check your insurance policies to see whether you would be covered in case of postponement or cancellation and what would need to happen. Clearly, no insurance policy can cover you if a show goes ahead but suffers from reduced turnout. You will also need to consider what would happen if key sales personnel were unable or unwilling to travel. Please plan ahead and speak to your insurance company or broker if you are in any doubt.

UK Export Finance and the Department for International Trade

UK Export Finance has expanded the scope of its Export Insurance Policy (EXIP), which means UK businesses can now secure export insurance cover to markets including the EU, US, Japan, Australia, New Zealand, Canada, Iceland, Norway and Switzerland with immediate effect.

The Department for International Trade urges companies to contact one of its 170 International Trade Advisers. To find your local ITA, visit: https://www.great.gov.uk/contact/office-finder/

Businesses are being encouraged to:

• Visit the Business Support websitefor more information about measures and support available to their business.
• Pay particular attention to the guidance for employees employers and businesseswhich is being updated regularly with the latest advice.
• Read the guidance for UK businesses trading internationally.
• Take steps to protect themselves and others.

UKFT will keep a close eye on the situation but in the meantime we urge companies to make their grant applications (where appropriate) and confirm space at the shows without delay.

The government has released the latest apprenticeship information that sets out guidance for apprentices, employers, training providers and assessment organisations in response to the impact of coronavirus (COVID-19). The latest information can be found here.

The Department for Education has also launched a Coronavirus helpline to support queries about coronavirus (COVID-19), relating to schools and other educational establishments in England on 0800 046 8687. Lines are open Monday to Friday from 8am to 6pm and weekends 10am to 4pm.

UKFT has been involved in our EQAP role in helping shape External Quality Assurance Covid-19 guidance with the other EQAPs over the past week. It has now been finalised and can be found here.

The information outlines that EPAs with a specified time limit may now be extended by 12 weeks, and also sets guidance on remote assessment where applicable.

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Leaders from throughout the UK fashion and textile industry have been sharing their experiences of how businesses are adapting to the changing situation and coping with the crisis. Read some of the stories below

‘Limited company directors need more support’: Gosha London

Tackling issues around retail rents: UKFT Rise chairman

Continuing to adapt in Stephen Walters’ 300th year

‘Manufacturers and designers must support each other’ says MAES London

‘UK manufacturing must be part of the solution’: Hunter Apparel Solutions

Collaborations with designers will become more important, says Pongees MD

‘SMEs like us are missing out on government support:’ TYLER & TYLER

Jo Gordon: ‘Make decisions and action new paths forward’

Simon Carter: ‘Don’t use this an opportunity to stitch up suppliers’

‘Debate but decide quickly,’ says Allied Textiles CEO

John Smedley MD on making employees feel safe

Johnstons of Elgin CEO: ‘Take advantage of your networks’

Thank you from the UKFT President HRH The Princess Royal

The Fashion & Textile Children’s Trust (FTCT) can support families within the UK fashion and textile industry, particularly in light of the Coronavirus.  FTCT offers grants towards the cost of essential items for children aged between 0-18 years, whose parent/carer works in the UK fashion and textile industry.

At this time, FTCT are reaching out to both employees and employers at member companies whose income has been or is likely to be affected by closures, short-hours or lay-offs as a result of Coronavirus.

When FTCT can help

If there are dependents aged 0-18 within the family and parents are experiencing financial difficulty due to loss of income, an FTCT grant could cover the cost of essential items such as clothing, school uniform and household essentials.

While FTCT grants can’t help with the immediate issues such as replacing lost income or helping towards the cost of bills, they can be particularly helpful once the Coronavirus crisis begins to subside and the financial impact will really be felt.

Parents are encouraged to find out more about FTCT grants and apply in advance for seasonal items such as school uniform or essential clothing, which will become essential in the summer months.

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