On Friday, the Chancellor Rishi Sunak announced an extension to the Jobs Support Scheme to protect jobs and support businesses required to close their doors as a result of coronavirus restrictions.
The scheme, which was announced last month and due to begin on 1 November 2020 will contribute 1/3rd of the shortfall of wages (capped at £697.72pm) for employees who were working reduced hours, but working at least 33% of their normal (pre-furlough) hours. The employer would contribute a further 1/3rd of the shortfall, and the employee would forego the final third.
The extension announced on 09 October will apply to any business required to close their premises due to local or national coronavirus restrictions. In that situation, the government has extended the scheme to include:
- Government payment of two thirds (67%) of their employees’ salaries, up to a maximum of £2,100 per month.
- Cash grants for businesses required to close in local lockdowns increased to up to £3,000 per month.
- Employers will not be required to contribute 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.
These measures will sit alongside the original JSS – designed to support businesses facing low demand over the winter months – and the £1,000 Job Retention Bonus (JRB) which encourages employers to keep staff on payroll.
For specific guidance on what this means for your business, contact us today.