Chancellor Rishi Sunak has announced changes to the government’s coronavirus job support scheme (JSS).
Sunak said the government is making three changes to existing support schemes:
Job Support Scheme (JSS)
The following changes apply to businesses which have not been legally required to close but are suffering from tier two restrictions:
- the employer contribution to the wage cost of unworked hours is reduced to 5%, and
- the minimum number of hours the employee will have to work is reduced to 20%, rather than 33%, so those working just one day a week will now be eligible.
For every hour not worked, the employee will be paid up to two-thirds of their usual salary. The government will provide up to 61.67% of wages for hours not worked, up to £1541.75 per month.
This starts on 1 November 2020. Employers will continue to receive the £1,000 Job Retention Bonus.
The Job Support Scheme Closed, for businesses legally required to close, remains unchanged.
SEISS Grant Extension
The government is doubling the self employed income support scheme (SEISS) grant from 20% of previous earnings to 40%, to a maximum of £3750 per month.
The first grant will cover a three-month period from November 2020 – January 2021. This is calculated based on 40% of three months’ average trading profits, paid out in a single instalment and capped at £3,750.
The second grant will cover a three-month period from February – April 2021. The level of this grant is to be kept under review and announced in due course.
SEISS Grant Extension will be available to self-employed individuals who temporarily cannot trade as well as those continuing to trade and facing reduced demand due to COVID-19.
HMRC will provide full details about claiming these in mid-November.
Business support
A new support scheme means every business premises will be eligible for up to £2,100 each month they are under tier two restrictions, and the payments are retrospective for any area which has been under these rules since August.
Local authorities will receive a funding amount that will be the equivalent of:
• For properties with a rateable value of £15,000 or under, grants of £934 per month.
• For properties with a rateable value of between £15,000-£51,000, grants of £1,400 per month.
• For properties with a rateable value of £51,000, grants of £2,100 per month.
This is equivalent to 70% of the grant amounts given to legally closed businesses under tier three, the highest level of restrictions (worth up to £3,000/month).
