The Chancellor has yet again announced further enhancements to the winter support package for businesses and employees.
Three key announcements were made on 22 October by Rishi Sunak, including increasing Government support under the job support scheme and self employment income support scheme, as well as introducing business grants for those in high alert level areas.
Job support scheme
The job support scheme (JSS) replaces the coronavirus job retention scheme (CJRS) from 1 November 2020 and is aimed at retaining employees through the winter months. Two tweaks to the scheme have been announced making it more attractive and less costly for employers to utilise.
The first change is that the employer contribution required for unworked hours under the JSS will be reduced from 33% to 5%, with the Government contribution increased from 33% to 61.67%. These contributions will be capped at £125 and £1,541.75 per month, per employee for the employer and Government respectively.
Further, the employee will now only be required to work a minimum of 20% of their usual hours, rather than one-third as originally announced.
Self-employment income support scheme
The third grant to be received under the self-employment income support scheme will now be doubled from 20% to 40% of average monthly trading profits. This equates to an increase in the maximum total grant payable from £1,875 to £3,750 in respect of the period 1 November 2020 to 31 January 2021.
The amount payable under the fourth (and presumably) final grant has not yet been confirmed.
Business grants
Additional funding will also be provided to local authorities in high alert areas (tier 2) to provide cash grants to businesses in the hospitality, accommodation and leisure sectors. These sectors have been identified as those most likely to be severely affected by the restrictions on socialising.
Local authorities will be able to administer and determine which businesses are eligible and the level of grants to be provided but grants of up to £2,100 per month should be available (depending on the rateable value of the business property).
Businesses in very high alert areas (tier 3) are already able to claim cash grants of up to £3,000 per month.
All the above announcements will come as welcome enhancements and support to businesses over the winter months and will hopefully help to ensure that more jobs are protected as well as offering some targeted support to those industries which are likely to be hit the hardest.