Government expands Job Support Scheme to support staff affected by Covid-19 restrictions

Government expands Job Support Scheme to support staff affected by Covid-19 restrictions

The government has expanded the Job Support Scheme to support businesses who are forced to close due to Covid-19 (Coronavirus) restrictions.

The Job Support Scheme is the government’s most recent attempt to support employees who are working reduced hours and prevent mass redundancies due to the financial constraints of businesses. The expansion of the new scheme will see the government pay for two-thirds (67%) of employees’ salaries if they are unable to work. up to a maximum of £2,100 per month.

Employers will not be required to contribute towards these wages, however, they will  be asked to fund national insurance and pension costs. Businesses will only be eligible for this grant if they are affected by Coronavirus restrictions and employees are off work for a minimum of seven consecutive days.

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The scheme which was originally announced by Rishi Sunak, chancellor of the exchequer on 24 September 2020, comes into effect on 1 November 2020 and will be in place until April 2021, however this is subject to review in January 2021. Further guidance on the scheme will be set out by HM Revenue and Customs in the coming weeks. Additionally, there will also be an increase of up to £3,000 for business grants to assist affected businesses.

Rishi Sunak, chancellor of the exchequer, said: “Throughout the crisis the driving force of our economic policy has not changed. I have always said that we will do whatever is necessary to protect jobs and livelihoods as the situation evolves. The expansion of the Job Support Scheme will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time.”