The Chancellor, the Rt Hon Rishi Sunak MP, announced today, on the 9th October, the expansion of the Government’s Job Support Scheme (JSS), which will support businesses across the country who are required to close their doors due to potential coronavirus restrictions. He confirmed the Government will pay two thirds of employees’ salaries, up to a maximum of £2,100 a month, in order to help businesses and protect their jobs and livelihoods in the challenging winter months ahead. Furthermore, the announcement also included an increase in cash grants of up to £3,000 per month for businesses who have to temporarily close due to local lockdowns. The scheme begins on 1 November and will be available for 6 months, including a review point in January.
Under the expanded scheme, companies and businesses who are legally required to shut their premises at some point over the next 6 months – whether it is part of a local or national restrictions, will receive grants in order to pay the wages of staff who cannot work – this will enable businesses to quickly reopen once the infection rates drop and the restrictions are lifted.
As with the rest of the JSS, payments to businesses will be made in arrears, via a HMRC claims service which will be available from early December. Employees of firms which have been legally closed in the period before 1 November are eligible for the CJRS.
This announcement has followed intensive engagement with Ministers, MPs, local leaders and local Councils on potential measures are coming in their areas which will result in businesses having to temporarily close to help slow and reduce the infection rate of Covid-19.
Following the announcement, the MP for Mid Sussex, Mims Davies, commented:
“This will come as welcome relief to businesses across the country. I have been in regular contact with business owners across Mid Sussex and I know how concerned they are at the prospect of further lockdown restrictions which could result in them having to temporarily close their businesses. They are really keen to move into recovery but this backstop, if required, is welcome to our local economy.
“This financial support will mean businesses and employees can rest easy in the knowledge the Government will be there to ensure they are protected through the tough winter months ahead. We all have to play our part in beating this virus to protect our loved ones and our economy, so wash your hands, keep your distance and follow the guidelines.”
Chancellor of the Exchequer, Rishi Sunak, said:
“Throughout the crisis the driving force of our economic policy has not changed. I have always said that we will do whatever is necessary to protect jobs and livelihoods as the situation evolves.
“The expansion of the Job Support Scheme will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time.”
More information can be found following the latest announcement here: https://www.gov.uk/government/news/job-support-scheme-expanded-to-firms-required-to-close-due-to-covid-restrictions