Chancellor announces increased financial support for businesses and workers
The Chancellor has announced yesterday increased financial support for businesses and workers. This is a response to further areas moving into higher alert levels across the country. Previous to this, the Chancellor announced his Winter Economy Plan late last month explaining the new measures that were to be in place for the next six months. The details of this plan can be found in an article we produced when the Winter Economy Plan was initially announced. Some of the details outlined in this original plan have now been adapted to offer further support for businesses.
Job Support Scheme Open
The announcement is supposed to lighten the burden of keeping staff on as businesses now face further pressure. There was initial worry that the JSS outlined last month was unlikely to save a significant number of jobs. The new plans outlined yesterday will hopefully reduce employers’ redundancy plans and save jobs within a number of sectors. The changes to the JSS Open are as follows:
- The government will provide 61.67% of wages for hours not worked by employees (up to £1541.75 per month)
- A reduction of the employers contribution to those unworked hours to 5%
- The minimum hours requirement has been reduced to 20% – so those employees only working one day a week are eligible
- Employee will take now at least 73% of their pay for working the new minimum of 20% of hours
- Employers will still receive the £1000 job retention bonus per employee
- Please note the Job Support Scheme for businesses legally required to close remains unchanged
The amount of profits covered by the two forthcoming self-employed grants has increased from 20% to 40%. This means the maximum grant will increase to £3750 from £1875.
- Additional funding to support cash grants of up to £2100 per month primarily for businesses within the hospitality, accommodation and leisure sector. These types of businesses may be adversely impacted by the restrictions in the high-alert level areas.
- This is available retrospectively to those areas who are already subject to the restrictions.
- These grants come on top of a higher level of additional business support for local authorities moving into tier 3.
- Grants could benefit 150,000 businesses within England who aren’t legally required to close but have been adversely affected by local restrictions, i.e. restaurants.
- The government will provide additional funding to Local Authorities to support businesses in high-alert areas which are not legally closed but are severely affected by the restrictions on socialising.
- The total funding received by each Local Authority will be based on the number of hospitality, B&Bs and leisure businesses are within that area.
- Local Authorities will receive a funding amount that will be the equivalent of:
- Properties with a rateable value of £15,000 or under, grants of £934 per month
- Properties with a rateable value of over £15,000 and under £51,000, grants of £1400 per month
- Properties with a rateable value of £51,000 and over, grants of £2100 per month
- Local Authorities will also receive a 5% top up amount to these grant amounts to cover other businesses who have been affected by do not come directly under those exact categories.
- The amount allocated to them will be decided by Local Authorities.
- Businesses that are in very high alert levels will qualify for additional support whether they are open or closed.
You can read the new plans in full detail on the government website.
If you have any concerns or would like to discuss things further, please get in contact with the HPC team today.
T: 0844 800 5932