On 22 October Chancellor Rishi Sunak announced increased support for businesses and workers hit by COVID restrictions. 

This included some significant changes to the Job Support Scheme (JSS) which replaces furlough which ends on 31 October.  The new scheme is known as the Job Support Scheme (Open and Closed) – it commences on 1 November and runs until 30 April 2021.

Key changes:

• Businesses that are operating but facing decreased demand can received support for wages through JSS Open. Employers contributions for an employee’s unworked hours have been reduced to 5% (up to a maximum of £125 per month or more at the employers discretion) and the minimum hours requirements is also reduced to 20% of the usual hours worked – this means those working just one day a week will be eligible.
• Government will now fund 62% of the wages for hours not worked up to a maximum of £1,541.75 per month. This means employees will receive at least 73% of their normal wages where they earn £3,125 per month or less.
• In JSS Closed an employee who cannot work due to the restrictions will received two thirds of their normal pay paid by the employer which will be fully funded by the government to a maximum of £2,083.33 per month (or more at the employers discretion).

Eligible employers can claim under JSS Closed where the premises have been legally required too close under the COVID restrictions and where the employee has been told to stop work for a minimum of seven consecutive calendar days.

Cash grant payments will be retrospective – backdated to August – for businesses in areas that have already been subject to restrictions, and are in addition to higher levels of additional business support for local authorities moving into the very high alert level (Tier 3). Business that could benefit include those that are not legally required to close but have been adversely affected.

Read more here.

Self-employed not ignored

Broadly the same level of support I being provided for the self-employed as is being provided for employees through the Job Support scheme.

The government will provide taxable SEISS (Self Employment Income Support Scheme) grants to support those experiencing reduced demand due to COVID-19 but are continuing to trade, or temporarily cannot trade.

It will be available to anyone who was previously eligible for the SEISS grant one and grant two, and meets the eligibility criteria.

The first grant will cover a three-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £3,750 in total.

Read more here.