COVID-19: further support announced

On 22 October, the Chancellor announced additional support in light of the tiered restrictions.

The Job Support Scheme commences on 1 November 2020. Under the scheme, as originally announced, employers would have been required to pay a third of their employees’ wages for hours not worked, and employees would have to be working 33% of their normal hours. Under the revised provisions, the employer contribution to those unworked hours is reduced to 5%, and the minimum hours requirement is reduced to 20%, so employees working just one day a week will be eligible.

The Job Support Scheme for businesses legally required to close remains unchanged.

The first grant of the extension to the Self Employed Income Support Scheme for the period 1 November 2020 to 31 January 2021 was to be 20% of average monthly trading profits, capped at £1,875 paid in a single instalment. The amount of the second grant covering the period 1 February 2021 to 30 April 2021 has not yet been announced. This announcement advises that the amount of profits covered by both grants will be 40%, capped at £3,750.

Cash grants of up to £2,100 per month, and based on rateable value, will be available primarily for businesses in the hospitality, accommodation and leisure sector adversely affected by the restrictions in high-alert level areas. These grants will be available retrospectively for areas already subject to restrictions and are in addition to higher levels of additional business support for Local Authorities moving into tier 3.

Further details are available on our COVID-19 page.