The Chancellor’s update on Friday outlined temporary support to businesses whose premises have been legally required to close due to covid-19 restrictions. In addition, this includes the expansion of Job Support Scheme.

Under this expansion, affected businesses will receive grants towards the wages of staff who have been instructed to cease work. This will cover businesses that, as a result of restrictions set by one or more of the four governments of the UK, are legally required to close. Furthermore, to also provide only delivery and collection services from their premises.

The government will pay two thirds of employees’ usual wages. This is up to a maximum of £2,100 per month. Furthermore, you will not be required to contribute towards wages. However, you do need to cover employer National Insurance and pension contributions.

You can apply for the JSS including the new expansion even if you haven’t previously used the Covid-19 Job Retention Scheme. JSS is available for six months, from 1 November, with payment of grants in arrears from early December. The scheme will be reviewed in January.

Are you Eligible?

If you have chosen to close, you will not be eligible for this expansion. This only applies to businesses which have been forced to close. In addition, this will mainly affect businesses in the hospitality sector.

Businesses will only be able to claim the grant while they are subject to restrictions. In addition, employees must be off work for a minimum of seven consecutive days.

The scheme will begin on 1 November 2020 and will be available for six months, with a review point in January 2021. In line with the rest of the Scheme, payments to businesses will be made in arrears, with the portal opening early December 2020. Contact us now if you would like any further support on the Expansion of Job Support Scheme.

Staff of firms that have been legally closed in the period before 1 November are eligible for the CJRS. However, they’re not entitled to the Job Support Scheme. Watch the Chancellor’s full statement HERE 

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