With new lockdown measures looming for certain sectors, the Chancellor has announced an expansion of the Job Support Scheme and grants for businesses who are forced to close.
Job Support Scheme
Businesses whose premises are legally required to shut as part of lockdown restrictions will be eligible to receive grants to pay the wages of staff who cannot work. The Government’s grant will cover two thirds of each employees’ salary (67%), capped at £2,100 per month.
Under the scheme, employers are not required to contribute towards the wages however, the payment of employer’s national insurance or pension contributions will not be covered – businesses must be aware that these remain payable by the employer. According to the Government, however, it is estimated that around half of potential claims are likely not to incur employer NICs or auto-enrolment pension contributions and so will face no employer contribution.
Businesses are only eligible to claim the grant whilst their business is subject to closure restrictions, and employees must be off work for a minimum of seven consecutive days.
This expansion of the Job Support Scheme will run for 6 months from 1 November, so this still leaves a problem for those employees who do not qualify for the tail end of the furlough scheme.
Payments will be made in arrears via a HMRC claims service that will be available from early December.
The Government will also increase the grants it pays to businesses in England legally required to close in local or national lockdowns as recognition of their ongoing fixed costs and overheads which need to be met.
These grants will be linked to rateable values, with up to £3,000 per month payable every two weeks, compared to the previous grants that were available of up to £1,500 every three weeks.
The breakdown is as follows:
– Small businesses with a rateable value of or below £15,000 can claim £1,300 per month;
– Medium sized businesses with a rateable value between £15,000 and £51,000 can claim £2,000 per month; and
– Larger businesses can claim £3,000 per month
Both of these measures will sit alongside the original Job Support Scheme and the £1,000 Job Retention Bonus which encourages employers to keep employees on the payroll.
For advice tailored to your business, please contact your usual PM+M representative or get in touch at firstname.lastname@example.org and we’ll direct you to the right person.
This information is correct as of 9 October 2020. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.