Rishi Sunak has announced that businesses will receive increased support through the Jobs Support Scheme for Open and Closed Businesses and the Self Employment Income Support Grant, in addition to announcing further help for certain businesses within high-alert areas who are not required to close.
The Jobs Support Scheme for Open Businesses (JSSO)
Employers will now be required to bring members of staff back from Furlough for 20% of their normal hours, down from 33%. This is equivalent to at least 1 day a week or 6 days in a 30-day month.
The Government will contribute 61.67% of the employee’s pay for the time they are not working, with employers required to contribute just 5%.
In practice this means that for an employee being paid £1,100 a month, working 20% of their normal hours, the employer will be required to pay £283.00 to cover working time and a portion of furlough pay.
In return the government will provide a grant of £543.00, ensuring the employee receives £807.00 or 73% of their normal wage, up to £3,125 a month.
The grant will operate from 1st November for all businesses and employees must be on an RTI Payroll filing as of 23rd September 2020.
The claims portal will open from 8th December 20, with the scheme running until 30th April 20.
The Jobs Support Scheme for Closed Businesses (JSSC)
Where businesses are required to legally close their business as a direct result of covid restrictions, the government will fully fund 2/3 of employee wages, up tp a maximum of £2,083.33.
Self Employed Grant (SEISS)
The next self employment grants were due to provide help equal to only 20% of average profits, this has been increased to 40% up to a maximum of £3,750. The grant will continue to be available during November – January and February to April 21.
Further information on the claims process is due to be published shortly.
Additional Business Grants
Local Authorities have been given additional funding to support businesses facing tighter restrictions who can trade but on a reduced level.
The grants will support businesses within the Hospitality, Accommodation and Leisure sectors with grant funding provided to local authorities on the basis of the number of businesses within these sectors in the local area.
Businesses will receive grants based on the rateable value of the property they operate from:
Properties with a rateable value below £15,000 or under will receive grants worth £934 per month.
Properties with a rateable value of £15,000 – £51,000 will receive grants worth £1,400 per month.
Properties with a rateable value above £51,000 will receive grants worth £2,100 per month.
Local authorities will also receive a 5% top up of funding to assist other businesses who may not fall wholly within these sectors.
Businesses within high alert areas will receive £3,000 a month regardless of whether they are open or closed.
The full press release relating to these new measures can be found via the following link: