Job Support Scheme expanded to firms required to close due to Covid restrictions
The government’s Job Support Scheme (JSS) will be expanded to protect jobs and support businesses required to close their doors as a result of coronavirus
restrictions, the Chancellor announced on 9 October.
Under the expansion, firms whose premises are legally required to shut for some period over winter as part of local or national restrictions will receive
grants to pay the wages of staff who cannot work. The government's aim is to protect jobs and enable businesses to reopen quickly once restrictions
The government will support eligible businesses by paying two thirds of each employee's salary (or 67%), up to a maximum of £2,100 a month.
Under the scheme, employers will not be required to contribute towards wages and only asked to cover NICS and pension contributions, a very small proportion of overall employment costs. It is estimated that around half of potential claims are likely not to incur employer NICs or auto-enrolment pension contributions and so face no employer contribution.
Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days.
The scheme will begin on 1 November and will be available for six months, with a review point in January. In line with the rest of the JSS, payments to businesses will be made in arrears, via a HMRC claims service that will be available from early December. Employees of firms that have been legally closed in the period before 1 November are eligible for the Coronavirus Job Retention Scheme (CJRS).
The scheme is UK wide and the UK Government will work with the devolved administrations to ensure the scheme operates across all four nations.
In addition to expansion of the JSS, the government is increasing the cash grants to businesses in England shut in local lockdowns to support with fixed costs. Further guidance will be published in the coming weeks.
These grants will be linked to rateable values, with up to £3,000 per month payable every two weeks, compared to the up to £1,500 every three weeks which was available previously. This could benefit hundreds of thousands of businesses, including restaurants, pubs, nightclubs, bowling alleys and many more.
If you would like any additional information please don't hesitate to get in touch with your usual relationship manager here at Jackson Stephen.