Government expand Job Support Scheme

Government expand Job Support Scheme

The Chancellor outlined how a number of new support initiatives will help businesses which are forced to close due to temporary local lockdown restrictions.

The government will also pay cash grants, of up to $3,900 per month payable every two weeks, to help shuttered businesses pay fixed costs.

That is being succeeded by the less generous Jobs Support Scheme, which will see the government pay up to 22% of wages for people returning to work from furlough from November 1.

Under the terms of the new financial support package, the government will pay 67% of the salaries of workers who won't be able to work, up to a maximum of 2,100 pounds ($2,730) a month.

What changes did Rishi Sunak announce? Employees must be off work for a minimum of seven days to be eligible.

Mr Sunak announced the Job Support Scheme will be expanded to help businesses affected by stricter lockdown measures.

"But, on first look, it would not appear to have gone far enough to prevent genuine hardship, job losses and business failure this winter".

The UK-wide Job Support scheme will run for six months, with a review of the policy in January.

For firms with a rateable value over £51,000, it rises to £3,000-a-month for each two weeks they are required to close.

The devolved administrations in Scotland, Wales and Northern Ireland will benefit from a £1.3bn increase to their guaranteed funding for 2020-21 - allowing them to continue their response to Covid-19 including through similar measures if they wish.

Paul Cherpeau, chief executive of Liverpool Chamber of Commerce, agreed that the measures fall short of what is needed.

Manchester, Liverpool and other areas of the North are expected to go into harder lockdown early next week, once the government launches its new traffic-light system for dealing with coronavirus outbreaks.

Business owners may be eligible for a Bounce Back Loan, or other loans such as the Coronavirus Business Interruption Loan Scheme.

Mike Cherry, the national chairman of the Federation of Small Businesses, said: "Evolving the Job Support Scheme to provide 2/3 of total salary costs together with enhancing existing cash grants for those faced with this scenario are both game-changers, and it's welcome to see them adopted today".

In a debate yesterday, Kevin Brennan, a Labour MP, spoke about those working in music and creative professions, following comments by Chancellor Rishi Sunak about the viability of the industries themselves.

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