Winter Economy Plan – GM&Co Update
Posted on 3rd November 2020 at 14:16
Responding to the crisis posed by a Covid Winter surge, the Chancellor announced last week additional measures, which include almost doubling the wage subsidy for workers required to go part time. We have included a summary of the key changes and detail.
Job Support Scheme (JSS):
Under the original announced JSS, which was due to come into effect on the 1 November, included employers paying a third of their employees wages for the hours not worked, and required employees to be working 33% of their normal hours.
Now under the new announcement, the employers contribution has been reduced to 5% for those unworked hours, and includes a reduction to the minimum hours required to 20%, so those working just one day a week will be eligible.
Employers will continue to receive the £1,000 Job Retention Bonus (subject to eligibility criteria).
Summary of details:
The JSS will operate from the 1 November. For every hour not worked, the employee will be paid up to two thirds of their usual salary, in which the government will provide up to 61.67% (up to £1541.75 per month), with the other 5% made up by the employer.
A fact sheet with further details can be found by clicking the link below:
Also announced by the Chancellor was approved additional funding, in order to support cash grants of up to £2,100 per month, primarily for businesses in the hospitality, accommodation and leisure sector, for those businesses adversely impacted by the restrictions in the high alert level areas.
The grants will be available retrospectively, for areas who have already been subject to restrictions.
It is believed these grants could benefit around 150,000 businesses in England, including hotels, restaurants, B&Bs and many more who are not legally required to close, but nonetheless have been adversely affected by local restrictions.
The additional funding is to allow Local Authorities to support businesses in high alert level areas, which are not legally closed, but which are severely impacted by the social distancing rules. We understand the funding received will be based on the number of hospitality businesses (hotel, B&B, and leisure businesses) within a local area.
For properties with a rateable value of £15,000 or under, grants of £934 per month
For properties with a rateable value over £15,000 and below £51,000, grants of £1,400 per month
For properties with a rateable value of £51,000 and over, grants of £2,100 per month
Local Authorities are also to receive a 5% top up amount, as grant amounts, to cover other businesses that might be affected by the local restrictions, but which do not fit in to the above categories. It will be up to Local Authorities to determine which businesses are eligible for grant funding in their local areas, and what funding to allocate to each business (these are approximate guides only).
Businesses in very high alert level areas will qualify for additional support, whether closed (up to £3,000 per month) or open.
Further details can be found by clicking the link below:
An increase in the amount of profits covered by the two forthcoming self-employed grants, (one from November to January and the other from February to April), from 20% to 40%, meaning the maximum grant will increase from £1,875 to £3,750.
Self Employed Income Support Scheme (SEISS) details:
The government will provide two taxable SEISS grants in order to support those who are experiencing reduced demand due to COVID-19, but are continuing to trade, or temporarily cannot trade. It will be available to anyone who was previously eligible for the SEISS grant one and grant two, and who meets the eligibility criteria.
The grants will be paid in two lump sum instalments (each covering three months). The first grant will cover a three month period from the beginning of November 20 until the end of January 21. The government will pay a taxable grant which is calculated based on 40% (of three months average trading profits), which will be paid out in a single instalment and capped at £3,750.
The second grant will cover a three month period from the beginning of February 21 until the end of April 21. The government will review the level of the second grant, and further details will be announced in due course.
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Whilst every effort in ensuring the accuracy of the content of these notes has been considered, we cannot be held responsible in any way in regards to any consequences and/or decisions arising from the information provided. For specialist advice tailored to your individual circumstances – please seek professional advice and contact us on the above details.
Tagged as: Job Support Scheme (JSS)
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