Jobs Support Scheme Extended
Chancellor Rishi Sunak has announced a safety net for those business effected by coronavirus measures in an extension to the Jobs Support Scheme, which is expected to begin on 1 November 2020.
The new extension applies to any businesses that is forced to close their premises due to local or national coronavirus restrictions. In that situation, the government will pay two thirds of their employees’ salaries, up to a maximum of £2,100 per month. Under the scheme, employers will not be required to pay towards wages and will only be asked to cover NICS and pension contributions.
Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days.
The scheme will begin on 1 November and will be available for six months, with a review point in January. In line with the rest of the JSS, payments to businesses will be made in arrears, via a HMRC claims service that will be available from early December.
Employees of firms that have been legally closed in the period before 1 November are eligible for the CJRS.
The scheme is UK wide and the UK Government will work with the devolved administrations to ensure the scheme operates effectively across all four nations.
In addition to expansion of the JSS, the government is increasing the cash grants to businesses in England shut in local lockdowns to support with fixed costs. These grants will be linked to rateable values, with up to £3,000 per month payable every two weeks, compared to the up to £1,500 every three weeks which was available previously. This could benefit hundreds of thousands of businesses, including restaurants, pubs, nightclubs, bowling alleys and many more.
The devolved administrations in Scotland, Wales and Northern Ireland will benefit from a £1.3 billion increase to their guaranteed funding for 2020-21 - allowing them to continue their response to Covid-19 including through similar measures if they wish.
These measures will sit alongside the original JSS - which is designed to support businesses that are facing low demand over the winter months - and the £1,000 Job Retention Bonus (JRB) which encourages employers to keep staff on payroll.
They build on the government’s wider package of unprecedented measures to help protect, create and support jobs through the pandemic, to ensure that nobody is left without hope or opportunity.
The new measures come amidst concerns that there will be stricter measures implemented in the worst hit areas such as Newcastle, Middlesborough and Leeds. It was reported on the news this morning that local councils were concerned with the financial impact that stricter measures would have, particularly on the hospitality industry which is already in crisis. One may take from this that further lockdowns are looming.
We acknowledged that this is an extremely worrying and stressful time for all our readers, and we hope the above assists you. If you would like any further information on the above or any employment law related matters then please do contact us.
