In response to the continuing economic challenges posed by the COVID crisis, the Chancellor today announced additional support for all businesses and grants for some industries.
The Chancellor has introduced three measures, including increasing the benefits of two previously announced support packages.
Job Support Scheme (JSS)
The JSS was announced last month to help businesses and employees remain operational up to 30th April 2021. The JSS commences on 1st November 2020 and is available to all businesses across all Tiers.
The Chancellor adjusted the JSS so that employees who work at least 20% of their regular working hours, down from 1/3rd, will qualify. For non-working hours, the Government will now pay up to 61.67% of wages capped at £1,541.75 per month and employers will now only pay 5%.
Where businesses are required to close under Tier 3, the contribution from the Government remains unchanged at 66.67% of wages capped at £2,100 per month.
In addition, the Job Retention Bonus remains available to all businesses.
Self-Employed Income Support Scheme (SEISS)
The SEISS begins on 1st November 2020 and is scheduled to run for six months, and will provide grants to self-employed businesses that are severely affected by the COVID crisis.
The scheme offers an initial grant for the three months ending on 31st January 2021 at double the amount announced in the initial package, equal to 40% of previous earnings, and is capped at £3,750.
Again, this scheme applies across all Tiers.
Business Grants
For businesses in the hospitality, accommodation and leisure industries in Tiers 2 and 3 who have been adversely impacted by the restrictions but not required to close, additional grants of up to £2,100 per month will be available. These grants will be administered by local authorities who will determine which businesses are eligible for funding in their local areas.
The Chancellor also announced additional funding for Tiers 2 and 3 affected businesses that are not classified entirely as hospitality, leisure or accommodation sectors.
Furthermore, the grants can be backdated to August for businesses in areas that have previously been subject to restrictions.
These three measures are welcome enhancements on the existing support packages and will provide ongoing support for the next six months. However, it also means businesses will once again need to review their business plans for the short and medium-term, including funding and staffing requirements to ensure viability.
If you require guidance on the Jobs Support Scheme, contact our HR team at hr@tc-group.com or call your local partner on 0330 088 7111 for details on the business grants and the SEISS.