Rishi Sunak has announced an extension to the Job Support Scheme on 9 October 2020 following the Government’s ‘Winter Economy Plan’ implemented on 22 September 2020.
- The Job Support Scheme will be expanded to support businesses across the UK legally required to close their premises due to coronavirus restrictions rather than making them redundant.
- The Government will now support eligible businesses by paying two thirds of each employees’ salary (or 67%), up to a maximum of £2,100 a month.
- Employers will not be required to contribute towards wages but will be required to cover NICS and pension contributions.
- Employees cannot be made redundant or put on notice of redundancy during the period within whilst the Employer is claiming the grant.
- The Scheme will take effect from 1 November 2020 and will be available for six months, with a review point in January 2021. Employers will be able to submit claims from December 2020.
- HMRC will check claims and payments may be withheld or need to be paid back if a claim is found to be fraudulent.
- Government has also confirmed that cash grants for businesses required to close in local lockdowns will also increase to up to £3,000 per month and are eligible for payment sooner, after only two weeks of closure rather than three.
- These measures will sit alongside the original JSS – which is designed to support businesses that are facing low demand over the winter months – and the £1,000 Job Retention Bonus (JRB) which encourages employers to keep staff on payroll. See our recent JSS/JRB news items.
See the JSS Extension Factsheet here.
It is highly likely this has been announced in preparation for the forthcoming Government announcement regarding further regional lockdowns. Whilst this may provide a ‘safety net’ to those sectors that have been severely affected by Covid-19 already and those who may continue to struggle beyond 31 October 2020, we believe this will no doubt result in further job losses.
We are supporting a number of clients with employment guidance, such as restructuring, redundancies, home working and absence policies. Please get in touch with one of our advisors on 0121 445 6178 for a chat to see how we can support you and your business.