New Job Support Scheme and further cash grants

Job Support Scheme

Further announcements were made on Friday extending the Job Support Scheme to businesses that are required to close due to Covid restrictions. The expansion of the scheme will see the government pay two thirds of employees’ salaries, to businesses that are legally required to close their premises.

The two thirds is restricted to a maximum of £2,100 a month, meaning any employee who earns over £3,150 a month will in effect receive less than two thirds of their salary. Employers will continue to be liable for the national insurance and pension contributions, but they will not be required to contribute towards the wages of employees. However they can choose to top up employees’ wages if they wish.

Like the new job support scheme, this scheme will be available from the 1st November and will continue for 6 months. The scheme will be reviewed in January and may see changes to the percentage offered. Businesses that are required to legally close before November will be eligible for the coronavirus job support scheme.

For more information on the scheme see https://www.gov.uk/government/news/job-support-scheme-expanded-to-firms-required-to-close-due-to-covid-restrictions

Cash Grants

Rishi Sunak also announced further cash grants of up to £3,000 per month to businesses shut in local lockdowns. This will be linked to rateable values of the business premises to help cover fixed costs. 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. Businesses will be eligible after only 2 weeks of closure.

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