Yesterday the Chancellor announced further financial support for businesses affected by the pandemic.
Changes to the Job Support Scheme
The Job Support Scheme (JSS) was introduced to replace the furlough scheme as of November, aiming to provide support to workers who have worked less than their usual hours as a result of reduced demand due to the pandemic.
Previously, employees would have had to work at least 33% of their usual hours, with employers paying for the hours worked along with 33% of their usual hours not worked as well as the Government covering a further 33%.
On the 22nd October 2020, however, changes to the JSS were announced: employees must now work at least 20% of their usual hours to qualify for the JSS and employers need to contribute 5%, resulting in the Government paying 62% of workers wages.
Employers are still expected to cover National Insurance (NI) and pension contributions.
This scheme is open to both small and large businesses – all companies are eligible regardless of which coronavirus tier they sit in and whether or not they have previously applied to use the furlough scheme.
There are further changes for business in tier 3 (see below for more information)
Support for business in tiers 2 & 3
For businesses that have been affected by being in tier 2 area restrictions, there will be cash grants available. Business in the hospitality, accommodation or leisure sectors will be able to claim up to £2,100 per month.
For businesses in tier 3, there are further changes to the job support scheme: the Government will cover 67% of workers usual wages and employers will not have to pay anything. However, employers must still pay NI and Pension contributions.
It was previously announced that self-employed workers could claim a grant covering 20% of average monthly profits up to a cap of £1,875 for 3 months. This has been increased to 40%, so workers can now claim up to £3,750. An additional second grant will be available to cover February – April, although the Government has yet to announce how much this grant will cover.
For any further information about coronavirus support and what it means for you and your business, contact us today.