Jobs Support Scheme expansion: How will it affect my business?
Prior to yesterdays introduction of new three-tier system for local lockdowns in England, Chancellor Rishi Sunak announced new measures to bolster the Jobs Support Scheme ahead of what he has described as a potentially “difficult winter”. We look into what protections the Government is offering to businesses and staff across the country.
What does it mean for employees?
Staff who are forced to be off work for more than seven consecutive days because their workplace closed due to Government restrictions will get part of their salaries covered. The Government will pay 67% of their salaries, up to £2,100 per month. The new policy sits alongside the Jobs Support Scheme, which supports staff who are not able to work full time because their employer faces low demand.
How long will it last?
The scheme launches on November 1, and will continue for six months after that.
Will I qualify for the scheme if my employer can still open for delivery?
Yes, the Government said that it would cover businesses that are required to provide only delivery and collection services from their premises, or food and drink outdoors from their premises.
What does it mean for businesses?
✅ Job Support Scheme to be expanded to closed businesses
✅ Government will pay two-thirds of employees’ salaries to protect jobs
✅ Bigger cash grants for businesses required to close
— Rishi Sunak (@RishiSunak) October 9, 2020
Businesses will be able to apply for grants to support them with fixed costs, such as rent. The grants will reach up to £3,000 per month, depending on the rateable value of the property, and will be paid every two weeks. Previously businesses were able to claim up to £1,500 every three weeks.
Companies will still be able to claim the £1,000 per head job retention bonus for employees they bring back off furlough and keep on the books until the end of January.
Does it help me if I am self-employed?
The new announcement includes no changes for self-employed people. Around 2.2 million self-employed people have applied for help under a Government scheme that launched on August 17. It is unclear if there will be any further support for the self-employed.
What other support is in place?
This announcement follows a package of measures set out in the winter economy plan, as well as existing funding schemes already supporting businesses during this challenging period. If you’re struggling to understand the impact of COVID-19 on your business or the array of financial assistance options available, get in touch and our Consulting and Advisory Service will create a clear plan to move you forwards, together.
[formidable id=19 title=true description=true]