Government announces changes to Job Support and Self-Employment Income Support Schemes in recognition of the ‘challenging times ahead’

Less than a month since announcing his Winter Economy Plan, the Chancellor says that he's always said that the government must be ready to adapt its financial support as the COVID-19 situation evolves

The government has announced further changes to the Job Support and Self-Employment Income Support Schemes in recognition of the 'challenging times ahead' as a result of the coronavirus (COVID-19) pandemic.

Less than a month since announcing the government's Winter Economy Plan, the Chancellor Rishi Sunak said today that -

'I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today. These changes mean that our support will reach many more people and protect many more jobs.'

To this end, the Chancellor announced that, in addition to the support available to businesses required to close in Tier 3 lockdown areas, open businesses in any area that are experiencing considerable difficulty will also be given help to keep staff on -

'When originally announced, the Job Support Scheme - which will come into effect on November 1 - saw employers paying a third of their employees’ wages for hours not worked, and required employers to be working 33% of their normal hours.

Today’s announcement reduces the employer contribution to those unworked hours to just 5%, and reduces the minimum hours requirements to 20%, so those working just one day a week will be eligible. That means that if someone was being paid £587 for their unworked hours, the government would be contributing £543 and their employer only £44.'

NB - the government says that the Job Support Scheme for businesses legally required to close remains unchanged.

In addition, the Chancellor announced that extra support is to be made available through the Self-Employment Income Support Scheme -

'Today’s announcement increases the amount of profits covered by the two forthcoming self-employed grants from 20 per cent to 40 per cent, meaning the maximum grant will increase from £1,875 to £3,750.

This is a potential further £3.1 billion of support to the self-employed through November to January alone, with a further grant to follow covering February to April.'

For more information, see Chancellor increases financial support for businesses and workers from gov.uk