In a statement to the House of Commons last week, the Chancellor announced that he would be increasing support through the existing Job Support and self-employed schemes, and expanding business grants to support companies in high-alert level areas. The Chancellor said that this builds on agreements reached with Local Authorities moving to Alert Level very high, with extra support for businesses, jobs and the economic recovery.

Job Support Scheme (JSS)

When originally announced, the JSS, which comes into effect on 1 November 2020, saw employers paying a third of their employees’ wages for hours not worked, and required employees to be working 33% of their normal hours. The Chancellor has reduced the employer contribution to unworked hours to 5% and reduced the minimum hours requirements to 20%, so those working just one day a week will be eligible. Employers will continue to receive the £1,000 Job Retention Bonus. The Job Support Scheme Closed, for businesses legally required to close, remains unchanged.

Self-employed grant

The Chancellor has increased the amount of profits covered by the two forthcoming self-employed grants from 20% to 40%, meaning the maximum grant will increase from £1,875 to £3,750. This is a potential further £3.1 billion of support to the self-employed through November to January alone, with a further grant to follow covering February to April 2021.

Business Grants

The Chancellor also announced approved additional funding to support cash grants of up to £2,100 per month primarily for businesses in the hospitality, accommodation and leisure sector that may be adversely impacted by the restrictions in high-alert level areas. These grants will be available retrospectively for areas who have already been subject to restrictions, and come on top of higher levels of additional business support for Local Authorities moving into Tier 3. To read the Government’s press release in full and for links to further information, click here.