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Plan for Jobs: increased financial support

North East Local Enterprise Partnership (North East Local Enterprise Partnership)

Created by North East Local Enterprise Partnership (North East Local Enterprise Partnership), 22nd October 2020

5 MINUTE READ


Plan for Jobs: Chancellor increases financial support for businesses and workers

On Thursday 22 October government announced an increase to its winter support schemes to support businesses and workers affected by the COVID-19 pandemic. 

The changes include:

  • open businesses which are experiencing considerable difficulty will be given extra help to keep staff on as government significantly increases contribution to wage costs under the Job Support Scheme, and business contributions drop to 5%
  • business grants are expanded to cover businesses in particularly affected sectors in high-alert level areas, helping them stay afloat and protecting jobs
  • grants for the self-employed doubled to 40% of previous earnings

Job Support Scheme (JSS)

When originally announced, the JSS – which will come into effect on 1 November – saw employers paying a third of their employees’ wages for hours not worked, and required employers to be working 33% of their normal hours.

The announcement on 22 October reduced the employer contribution to those unworked hours to 5%, and reduces the minimum hours requirements to 20%, so those working just one day a week will be eligible. That means that if someone was being paid £587 for their unworked hours, the government would be contributing £543 and their employer £44.

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 announcement increases the amount of profits covered by the two forthcoming self-employed grants from 20 per cent to 40 per cent, meaning the maximum grant will increase from £1,875 to £3,750.

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 who 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 which, if scaled up across the country, would be worth more than £1 billion.

Find out more.


North East Local Enterprise Partnership (North East Local Enterprise Partnership)

Created by North East Local Enterprise Partnership (North East Local Enterprise Partnership), 1 month ago, [last edited 1 month ago]


Tagged under Covid19

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