Muras Matters: Coronavirus (COVID-19): Expansion of Job Support Scheme

Background

Last week the Government announced an expansion of the Job Support Scheme (JSS) to provide temporary support to businesses whose premises are legally required to close as a direct result of coronavirus restrictions.

An increase in cash grants for business required to close as a result of local lockdowns of up to £3,000 was also announced.

Detail

Expansion of Job Support Scheme

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

The main points of the scheme expansion are:

  • The government will pay two-thirds of employees’ wages, up to a maximum of £2,100 per month.
  • Employers will not be required to contribute towards wages.
  • Employers will only need to cover employer National Insurance and pension contributions.

Businesses will only be eligible to claim the grant whist they are subject to any restrictions and employees must be off work for a minimum of seven consecutive days.

Businesses will be able to apply to use the expansion of the JSS even if they have not previously made a claim under the Coronavirus Job Retention Scheme (CJRS).

The scheme will begin on 1 November 2020 and will be available for six months, with a review in January 2021. In line with the main JSS, payments to businesses will be made in arrears via a HM Revenue & Customs claims service that will be available from early December.

Further guidance is expected to be published by the government in the coming weeks and we will update you when this is available.

Local Restrictions Support Grant

The Government has also announced that cash grants for businesses required to close due to a local lockdown will increase to up to £3,000 per month in order to provide support with fixed costs. These grants will be linked to rateable values, with up to £3,000 per month payable after only two weeks of closure, compared to the up to £1,500 after three weeks of closure previously available.

Our Current working arrangement – We remain ‘Open for business’

Our staff have returned to office based working on a rota basis, each attending two days a week, whilst continuing to work from home at other times. They can still be contacted in the usual way either via email or by calling the office number where reception will divert your call to the appropriate staff member.

If you would like more information or if you require our assistance in ensuring your eligibility for the Job Support Scheme or the local restrictions cash grant, please speak to your usual contact at the firm.

To see our other news items please visit our Muras Baker Jones – Blog.