The Chancellor has today (9 October 2020) announced that the Government’s Job Support Scheme will be expanded to protect jobs and businesses required to close, due to local coronavirus restrictions. The scheme is UK wide and the UK Government will work with the devolved administrations to ensure the scheme operates effectively across all four nations.
Under this expansion, affected businesses will receive two thirds of their employees’ salaries, up to a maximum of £2,100.00 per month. Employers will not be required to contribute towards wages, save for NICS and pension contributions.
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. To be eligible, employees must be employed and an RTI submission notifying payment in respect of that employee must have been made on or before 23 September, to HMRC.
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 CJRS.
In addition to the expansion of the JSS, the Government is increasing the cash grants to businesses in England that have been forced to shut in local lockdowns; 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.
We will keep you updated with further developments.
