COVID 19 –  Support Measures – Job Support Scheme & Grants

job support scheme

To support individuals and businesses through this winter, the government has introduced new support schemes – Please see the below summary of the new Job Support Scheme, Self-Employed Grants and Business Grants.

Job Support Scheme

Job Support Open – Businesses that are operative during COVID-19 but facing a decrease in demand can get support for wages:

  • The scheme comes into effect on November 1st 2020 and will run for six months
  • Employers will be able to claim in arrears from December 8th 2020, with payments made after the claim has been approved
  • Employee must work a minimum of 20% of their usual hours – Employer pays for these hours worked
  • Employer pays 5% of their unworked hours
  • Government pays 61.67% of unworked hours up to £1.541.75 p/m
  • Employees receive at least 73% of usual salary
  • Employees cannot be on the scheme and made redundant/given notice of redundancy

Job Support Closed – Businesses legally required to close their premises as a result of COVID-19 can get support for wages:

  • This includes premises restricted to delivery or collection only services from their premises and those restricted to provision of food and / or drink outdoors
  • The scheme comes into effect on November 1st 2020 and will run for six months
  • Employers will be able to claim in arrears from December 8th 2020, payments will be made after the claim has been approved
  • The government will cover two thirds of usual pay, up to £2,083.33 p/m
  • This is paid directly from the employer but funded by the government
  • Employers can choose to top up salaries in the remaining one third
  • Employees cannot be on the scheme and made redundant/given notice of redundancy

Self Employed Grants

The new support for the self employed will consist of 2 further loans / grants. The first covering 1st November 2020 – 31st January 2021, the second covering 1st February 2021- 30 April 2021. 

The first grant allows you to claim a lump sum covering 40% of three months of average monthly profits, up to a total of £3,750

The government has not yet announced the amount you will be able to claim in the 2nd grant.

Business Grants

The government is providing additional funding to allow local authorities to support businesses in Tier 2 areas, which are not legally closed, but have had severe impacts due to restrictions. 

Businesses in the hospitality, leisure and accommodation sector can claim a direct grant of up to £2,100 for every month the restrictions apply. These grants will be available retrospectively for areas who have already been subject to restrictions

Local Authorities will determine precise funding to allocate to each business.

This could be equivalent to:

  • For properties with an RV of £15k or under, grants of £934 per month 
  • For properties with an RV above £15k and below £51k, grants of £1,400 per month 
  • For properties with an RV of £51k or above, grants of £2,100 per month

Businesses in Tier 3 / Very High alert levels, will receive greater support if open or closed – up to £3000 p/m. The government will work with local authorities to provide business support packages.

For more information on any of the above, please contact us today