Updated 12th October 2020
In light of the upsurge in local lockdowns and in anticipation of further announcements next week the Chancellor has today announced an extension to the Job Support Scheme.
The new allowance is available to any businesses required to close their premises due to local or national coronavirus restrictions. If that applies to you, the government will pay two thirds of your employees’ salaries, up to a maximum of £2,100 per month. In contrast to the current furlough scheme employers will not be required to contribute towards wages but will 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.
This is in addition to the newly launched Job Support Scheme which will contribute 1/3rd of the shortfall of a furloughed employee’s wages (capped at £697.72pm) where employees have their hours reduced. To qualify they must work at least 33% of their normal (pre-furlough) hours. The employer would then contribute a further 1/3rd of the shortfall for the hours not worked, and the employee would forego the final third. Employees would be paid in full for the hours they actually work.
The scheme, effectively an extension of the current furlough scheme, will begin on 1 November and will be available for six months. In line with the rest of the JSS, payments to businesses will be made in arrears. HMRC will publish details of how to claim this in due course.
If you are affected by local lockdown and have questions about the extension of this scheme please do contact Gary Smith on 01279 712576 or via email gsmith@nockolds.co.uk