New Government Coronavirus Scheme to Pay Up to Half of Wages

Today 22 October, Rishi Sunak has announced big changes to the Job Support Scheme (JSS) which has been set to replace the Furlough scheme in November. This has occurred due to many businesses being forced to shut in Tier 2 and Tier 3 areas.  However, the Chancellor also expressed that many businesses which are not forced to shut are also facing “profound economic uncertainty”.

Many businesses in Tier 2 areas have expressed that they are actually worse off than those which have been forced to shut under tier 3 restrictions; although they would not be able to open, they would be able to gain greater levels of Government support. Claims such as this have resulted in the amendments being made to the JSS, aiming to provide these businesses with the additional support which they need.

Mr Sunak announced that the JSS will become both “simpler and more generous”. Employees now only need to work one day a week (20% of their usual hours) to be eligible for the scheme, as opposed to the original one third (33%) of hours worked. Additionally, the Government have significantly reduced the amount which those employers now have to contribute towards wages – from 33% to 5%.

Additionally, the Government will be doubling the value of the grants available to Self-Employed individuals. This makes them now able to claim a grant of up to £3,750, with the amount of profits they can claim for rising from 20% to 40%.

Finally, cash grants will be made available to “predominantly hospitality and leisure business in tier 2 areas operating under restrictions”. These grants are to be worth up to £2,100 per month and will aim to assist those businesses that were making the claims that they would be “better off” under Tier 3 restrictions.

Coronavirus has caused much confusion and insecurity, but the Government are attempting to counterbalance the damage with the JSS scheme. The team here at NR Barton are also here to fight your corner and advise you through these tough times.

If you have any questions regarding how these changes to the JSS may affect you, please contact your usual Manager or Partner, who will be happy to help.




Author: Michael McLoughlin


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