You are here: Home - Saving & Banking - News -

Staff to get up to £2,100/month if firms shut due to Covid-19 restrictions

0
Written by: Shekina Tuahene
09/10/2020
Employees who work for businesses which are forced to closed due to local or national coronavirus restrictions may be eligible to receive two thirds of their salary, the chancellor has announced.

Thexpansion of the Job Support Scheme (JSS) will mean firms in areas legally required to shut in a bid to stop the spread of coronavirus, will receive grants to pay the wages of staff who can’t work.

A maximum of £2,100 a month (two thirds of their wages) can be paid to staff to protect jobs and enable businesses to re-open quickly once restrictions are lifted as part of the ‘localised furlough scheme’. Companies can top-up staff wages but they’re not required to.

Employers won’t be required to contribute towards employee wages and will only need to cover national insurance and pension contributions. 

Businesses will be eligible to claim while they are subject to restrictions and employees must be off work for at least seven consecutive days.

Businesses don’t need to have previously used the Coronavirus Job Retention Scheme to be eligible for the new support for employees.

The scheme will begin on 1 November and be available for six months, with a review of the scheme set to take place in January. It will apply across the UK and devolved authorities will handle the scheme across England, Northern Ireland, Scotland and Wales. 

Payments to businesses will be made in arrears through a HMRC claims service which will be available from December. 

The expansion of the scheme will sit alongside the existing JSS scheme, which changed at the beginning of the month and currently sees furloughed employees paid up to 60% of their wages.

The job retention scheme which pays employers £1,000 for every employee kept on until January is also still in place.  

Chancellor of the exchequer, Rishi Sunak, 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.” 

Cash grants for businesses

Additionally, the government is increasing cash grants to businesses in England which have been closed as part of local or national lockdowns.

The grants will support fixed business costs and be linked to rateable values, with up to £3,000 a month payable every two weeks, compared to the previous system of being paid up to £1,500 every three weeks.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Days left for self-employed to apply for £6,500 coronavirus grant

Eligible self-employed workers who have been financially impacted by the coronavirus crisis have just days left to apply for a...

Close