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Expansion to the Job Support Scheme

Expansion to the Job Support Scheme
Richard Hiron Oct 09,2020
blog post

The Chancellor, Rishi Sunak has today announced that, from 1 November 2020, the government's Job Support Scheme will be expanded for 6 months to provide support for businesses that are required to close owing to COVID-19 restrictions over the winter months.

Under this expansion, the government will pay two-thirds (or 67%) of each employee's salary up to a monthly maximum of 2,100. Employers that need to rely upon this expansion will only be required to pay National Insurance contributions and pension contributions, not wages.

In order to claim the grant:-

  1. Businesses must be subject to restrictions; and
  2. Employees must be off work for a minimum of 7 consecutive days.

The expansion to the Job Support Scheme will be reviewed in January 2021.

Additionally, the government has announced that it is increasing the cash grants available to businesses in England that have been shut in local lockdowns to support them with fixed costs. The grant of up to 1,500 every 3 weeks will instead be linked to rateable values, with up to 3,000 per month payable every 2 weeks being made available. The government has specifically announced that it is hoped that this expansion will assist hundreds of thousands of businesses, particularly those in the hospitality sector, including restaurants, pubs, nightclubs and bowling alleys.

In Scotland, Wales and Northern Ireland, there will be a 1.3 billion increase to guaranteed funding for 2020-2021.

The core Job Support Scheme and Job Retention Bonus will otherwise continue to operate as previously reported.

We recommend that businesses read the guidance to see how it may apply to them.