Addressing the Commons today (22 October), Chancellor Rishi Sunak has unveiled “three further steps” of business support for workers:
Extension to business grants
- The grant scheme will be extended for businesses in any tier – even if not forced to close by law. They will be eligible for cash grants of up to £2,100 a month, primarily benefitting the hospitality, accommodation and leisure sector. These grants will be retrospective, with businesses in any area that has been under enhanced rules able to backdate claims to August.
Changes to Job Support Scheme
- In tier 3 areas, the government will now over the full cost of employers paying two-thirds of people’s salaries where they cannot work for a full week or more.
- The number of hours an employee needs to work to be eligible to enter the Job Support Scheme will reduce from 33% to 20%.
- The employer contribution to the hours not worked will reduce from 33% to 5%.
- The government will now fund 62% of the wages for hours not worked . This more than doubles the maximum payment to £1,541.75.
Support for the self-employed
- Government contributions for the self-employed will increase, with income support doubling from 20% to 40%, increasing the maximum grant to £3,750
Read more details on the announcement here.
Commenting on the Chancellor’s announcement of further support for businesses and jobs as Coronavirus restrictions increase, BCC Director General Adam Marshall said:
“This is a very significant improvement in the support available to businesses struggling with the impact of increasing restrictions across the UK.
“Chambers have been campaigning for greater support for businesses experiencing big falls in demand as a result of new restrictions, and a number of the steps announced today, including the lowering of employer contributions and the number of hours worked needed to qualify for the scheme, respond directly to our calls.
“Backdated grants for hospitality firms in tier two and enhanced grants for the self-employed will go some way to alleviating pressure on many of those who have been particularly vulnerable to the economic impact of the pandemic.
“Chambers have called for support to be truly commensurate with the restrictions imposed on businesses as part of our five tests for Coronavirus measures. The true test of these reforms will be whether they help businesses on the ground get through the difficult months ahead. Chambers of Commerce will continue to work with the Treasury to ensure that support is responsive and preserves businesses and livelihoods.”