The Chancellor has today unveiled further support for jobs and workers hit by COVID-19 restrictions after growing demand from businesses in Tier 2 areas for this issue to be addressed. See below a breakdown of today’s announcements.
Job Support Scheme
The Job Support Scheme, which is due to launch at the beginning of November, is based on employees working reduced hours due to lower demand.
Amendments to the scheme were today announced as follows:
– Government will now pay at least 62% (almost two thirds) of wages for the hours not worked by the employee (in comparison to the original plan, in which the Government confirmed they would fund only one third)
– The employer contribution towards these hours not worked has been cut from 33% to 5%
– Employees will now take home at least 73% of pay for working the new minimum of 20% of their normal working hours (rather than working a minimum of one third of normal hours, as previously announced)
Support for businesses legally required to close
Employers are required to pay employees two thirds of their normal salary (where they can’t work for a week or more) and the Government will cover 100% of those costs.
New cash grant scheme for hospitality businesses in Tier 2
Specific help for businesses in the hospitality, leisure and accommodation sectors impacted by Tier 2 restrictions was also announced (these businesses are not required to close under Tier 2 rules, but of course may see a reduction in income).
Councils in England will be given funding to provide grants of up to £2,100 to 150,000 hotels, restaurants and Bed & Breakfast accommodation for each month that Tier 2 restrictions apply.
These are additional to the grants of up to £3,000 available for businesses who have been legally required to close.
This will also be a retrospective grant with businesses able to backdate claims to August, if they’ve been operating in areas with enhanced restrictions since then.
Self-employed grants are being doubled from 20% to 40%, meaning that the maximum grant will go up from £1,875 to £3,750.
These grants are available for all self-employed individuals (operating across all three tiers) who have stopped trading or have had a significant fall in trade, with two further payments to come.
GET IN TOUCH
For further information on any of the above support, or advice tailored to your situation, please contact your usual PM+M adviser or get in touch at email@example.com and we’ll direct you to the best person to help.
This information is correct as of 22 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.