On Thursday 22 October 2020, Chancellor Rishi Sunak announced a more generous Job Support Scheme and a 50% increase in the next self-employed income support grant. Businesses based in England that are affected by ‘tier 2’ restrictions will be given access to new cash grants.
Here is a summary of the new measures:
- The Job Support Scheme will be extended – the Government will contribute 61.67% of non-worked hours, capped at £1,541.75 per month once the scheme launches on 1 November 2020. This will apply to those working a minimum of 20% of their usual hours – the criteria was previously over 30%. Employers will now only need to pay 5% of non-worked hours rather than 33%. This will be capped at £125 per month and include National Insurance Contributions plus automatic pension enrolment contributions in full. Employers can choose to top up employee’s wages above the 5% contribution at their own discretion.
- Businesses in England that are affected by tier 2 restrictions will receive grants of up to £2,100 per month whilst restrictions apply. This is as well as the £3,000 per month announced for businesses that must legally close under tier 3 restrictions.
- The next self-employed Income Support Scheme grant will be doubled. It will now be worth up to £3,750. Grants for the self-employed will now equate to 40% of previous earnings.
Full details of today’s measures can be found here.
As we noted in our article earlier this week, London currently falls within tier 2 of the COVID-19 restrictions and we will provide regular updates as things change. For more information on the latest Government changes to support businesses affected by the COVID-19 pandemic, please contact us via email or call the Grant Saw team on 020 8858 6971.