Just two weeks after the Chancellor’s Winter Economy Plan was announced by the Chancellor, and with the growing spike in Coronavirus positive tests, the Government unveiled an extension to the newly announced Job Support Scheme and Increased Grants.

  1. An Extension To The Job Support Scheme…
  • Starting in November, the government will cover two-thirds of employees’ salaries up to £2,100 a month where coronavirus measures have forced firms to shut by law;
  • The new expansion will apply specifically to those in businesses formally or legally asked to close for a minimum of seven consecutive days over winter as part of local or national restrictions.
  • The firms will receive grants to pay the wages of staff who cannot work. The payments will be taxable, and employers will be required to cover employer national insurance contributions and auto enrolment contributions in full (where applicable).
  • Employers or employees who have not previously used the Coronavirus Job Retention Scheme can still claim on the new scheme.
  • The Job Support Scheme is expected to be available to employers for six months from 1 November 2020 with a review in January.

 

  1. And Increased Grants…
  • Businesses in England required to close by local lockdowns can also apply for cash grants of up to £3,000 per month to support with fixed costs;
  • 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
  • The grants are available along the following delineations:
    • Businesses with properties worth £15,000 or less can claim £1,300 a month
    • Firms with properties worth between £15,000 and £51,000 can claim £2,000 per month
    • Larger businesses with properties worth £51,000 or more can claim £3,000 per month.

Barrons has put together a helpful guide to running your business during the coronavirus crisis.