Rishi Sunak has today announced further support for jobs and businesses over the coming months. An acknowledgement towards the frustrations of those living in areas with tighter restrictions was given, along with a reiteration that a “balanced approach” continues to be the right way forward. We highlight the principle funding changes below.
Business grants extension
Businesses that have been legally forced to close are already able to claim a grant up to £3,000 a month to help with passive expenditure, such as rent and rates.
A further grant scheme is now being made available to struggling businesses in tier 2 restrictions that are currently able to stay open, but have seen a decline in income. Cash grants of up to £2,100 per month will be made available through the local authorities and will be retrospective – claims can be backdated as far as August. This move is expected to primarily benefit businesses in the hospitality, accommodation and leisure sectors.
Changes to the Job Support Scheme (JSS)
Mr Sunak announced further changes to the upcoming JSS, with an aim to make it “more generous to employers”. For businesses under tier three restrictions, the government will cover the cost of two-thirds of employee’s salaries if they are unable to work for a week or longer.
For businesses that can open, the number of hours that an employee needs to work to be eligible for the JSS has been reduced from 33% to 20%. Furthermore, the employer’s contribution to the hours not worked will reduce from 33% to 5%. As with the business grants extension, the main beneficiaries of these changes are expected to be employers in the hospitality sector. Note that the JSS will be available to businesses in any tier of Covid-19 restrictions.
Self-employment grant increase
Before the latest announcement on 22nd October, the third grant available under the Self Employment Income Support Scheme (SEISS) was set to cover 20% of average monthly profits, calculated over a three-year period. This has now been doubled to cover 40%, up to a maximum £3,750 per claimant, to support self-employed people who have been adversely impacted by Covid through the period November 2020 to January 2021.
Get in touch
For more information or help with anything related to Covid-19 funding, please get in touch by emailing firstname.lastname@example.org or calling the office on 01392 241228.