Coronavirus Advice, government, Small Business

Increased support for Covid hit jobs and workers unveiled

By RJP LLP

Increased support for Covid hit jobs and workers unveiled

Updated: 12 November 2020

Rishi Sunak has confirmed the Job Support Scheme (JSS), which was due to replace furlough from 1 November 2020, will be postponed until further notice. Instead furlough will continue until March 2021. If the JSS scheme becomes operational we will update our articles accordingly.

How was JSS intended to work

Under the proposed JSS scheme, employer contributions will decrease and employees can be working for fewer hours to qualify. The subsidy provided by the treasury has doubled, in an attempt to support businesses suffering due to the new restrictions.

The change was introduced after hospitality businesses in tier 2 regions declared they would be financially better off if under tier 3 restrictions and were forced to close. Below are details of the new scheme and we will provide examples of how the contributions will be calculated in our next update.

How does the new plan work in detail?

Old scheme:

Employers had minimum requirement of paying 55% of wages for a third of hours

New scheme:

Employers have to pay a minimum of 20% of usual hours worked and 5% of usual hours not worked.
The government funds 62% of wages for hours not worked.
The maximum payment that can be made through the scheme is £1,541.75 a month.

Who is eligible?

Any UK registered small business and any UK registered larger businesses with evidence of revenues being impacted by Coronavirus.

It is available across the UK, primarily for businesses impacted by tier two restrictions but other businesses may still apply.

job support scheme

What other help is available for the hospitality sector?

More specific help is also being offered to hospitality and leisure businesses in tier two areas. Monthly grants of up to £2,100 are being made available through local councils for hotels, restaurants and B&Bs.

More help for self-employed workers

The self-employment scheme has also been enhanced. Now, a first taxable grant available from the start of November will cover 40% of average monthly trading profits, with a limit of £3,750 in total. This will be paid out as a single instalment covering three months’ worth of profits. The second grant, with the same terms, will cover a three-month period from the start of February 2021 until the end of April 2021.

Please contact us via partners@rjp.co.uk for further help.

How to get onboard with RJP

Talk to us

Have an initial discussion with a member of the RJP team to identify ways we can enhance your business's growth with our comprehensive support and strategic advice.

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Choose RJP and we'll smoothly manage all transitions, handling paperwork, coordinating with your current accountant, and ensuring no deadlines are missed for a worry-free experience.

A pathway to growth

Finally, we will send you the required documents to sign and return, leaving you to continue leading your business, backed by our abundant, responsive advice and support.

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