Government to pay two thirds of wages at businesses forced to shut during coronavirus lockdown
Chancellor Rishi Sunak vows to help businesses hit by local measures to slow coronavirus pandemic
By Alistair Houghton Business Live Editor 9 OCT 2020
VIDEO
https://www.business-live.co.uk/economic-development/government-pay-two-thirds-wages-19079628
Chancellor Rishi Sunak says the Government’s Jobs Support Scheme will be extended to support businesses forced to close by any new coronavirus restrictions or lockdowns.
Mr Sunak this afternoon, Friday October 9, said that any firms whose premises are “legally required to shut” due to local or national restrictions will get grants worth up to two thirds of each employees’ salary (or 67%), up to a maximum of £2,100 a month.
The Government says that under the expanded JSS scheme, employers will not be required to contribute towards wages but will have to cover National Insurance and pension contributions.
The Government says: “It is estimated that around half of potential claims are likely not to incur employer NICs or auto-enrolment pension contributions and so face no employer contribution”.
Businesses will only be able to claim the support while subject to restrictions. Employees must be off work for a minimum of seven consecutive days.
The support will start on November 1 and run for six months, with a review in January.
Payments will be made in arrears through an HMRC claims service that will be available from early December.
The scheme is UK-wide and the Government has pledged to work with devolved administrations. The Government has also pledged to work with local elected mayors and political leaders over proposed local lockdowns, following criticism in some areas over a lack of consultation.
The Government has also increased the cash grants for businesses required to close in local lockdowns.
Up to £3,000 per month will be available, compared to £1,500 previously.
Mr 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.”
But in Wales it's already feared that some local firms could miss out on the benefits of the scheme.
In the north, where local lockdowns are likely, Northern Powerhouse Partnership director Henri Murison said: "This news will undoubtedly come as a huge relief to many communities and businesses across the whole of the North.
“Further lockdowns must go hand in hand with further support packages from the government and this scheme will help to save businesses and livelihoods for up to hundreds of thousands of people.
“However, the help can’t stop here. We wrote to the Chancellor today to urge more support in both the short and long-term. We can’t let Covid undo all our efforts to rebalance the economy in recent years.
“Instead we must give local leaders more tools to meet the needs of the people who elected them and invest back into Northern cities - if we are ever to achieve real levelling-up.”
Liverpool Chamber of Commerce chief executive Paul Cherpeau said: "The measures from the chancellor offer some support to businesses that once again through no fault of their own have to close their doors.
"We welcome the support of wages, however the £3,000 figure will not even cover the rents of some businesses let alone revenue loss and again we fear for the future of our leisure and hospitality which is the fuel of the region.”
Chancellor Rishi Sunak says the Government’s Jobs Support Scheme will be extended to support businesses forced to close by any new coronavirus restrictions or lockdowns.
Mr Sunak this afternoon, Friday October 9, said that any firms whose premises are “legally required to shut” due to local or national restrictions will get grants worth up to two thirds of each employees’ salary (or 67%), up to a maximum of £2,100 a month.
The Government says that under the expanded JSS scheme, employers will not be required to contribute towards wages but will have to cover National Insurance and pension contributions.
The Government says: “It is estimated that around half of potential claims are likely not to incur employer NICs or auto-enrolment pension contributions and so face no employer contribution”.
Businesses will only be able to claim the support while subject to restrictions. Employees must be off work for a minimum of seven consecutive days.
The support will start on November 1 and run for six months, with a review in January.
Payments will be made in arrears through an HMRC claims service that will be available from early December.
The scheme is UK-wide and the Government has pledged to work with devolved administrations. The Government has also pledged to work with local elected mayors and political leaders over proposed local lockdowns, following criticism in some areas over a lack of consultation.
The Government has also increased the cash grants for businesses required to close in local lockdowns.
Up to £3,000 per month will be available, compared to £1,500 previously.
Mr 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.”
But in Wales it's already feared that some local firms could miss out on the benefits of the scheme.
In the north, where local lockdowns are likely, Northern Powerhouse Partnership director Henri Murison said: "This news will undoubtedly come as a huge relief to many communities and businesses across the whole of the North.
“Further lockdowns must go hand in hand with further support packages from the government and this scheme will help to save businesses and livelihoods for up to hundreds of thousands of people.
“However, the help can’t stop here. We wrote to the Chancellor today to urge more support in both the short and long-term. We can’t let Covid undo all our efforts to rebalance the economy in recent years.
“Instead we must give local leaders more tools to meet the needs of the people who elected them and invest back into Northern cities - if we are ever to achieve real levelling-up.”
Liverpool Chamber of Commerce chief executive Paul Cherpeau said: "The measures from the chancellor offer some support to businesses that once again through no fault of their own have to close their doors.
"We welcome the support of wages, however the £3,000 figure will not even cover the rents of some businesses let alone revenue loss and again we fear for the future of our leisure and hospitality which is the fuel of the region.”
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