Job Support Scheme expanded to provide two-thirds of employees’ salaries where employer is required to close in local or national lockdown

Government announces new scheme from 1 November 2020 for employees who have been off work for a minimum of seven consecutive days

The government has announced it is expanding the Job Support Scheme (JSS) to pay two-thirds of employees’ salaries where their employer is required to close in a local or national lockdown.

Introducing the new rules today, 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.’

Details of the scheme - that sits alongside the original JSS and the £1,000 Job Retention Bonus - include that -

• businesses whose premises are legally required to shut for some period over winter as part of local or national coronavirus (COVID-19) restrictions will receive government support of two-thirds of each employees’ salary (67 per cent), up to a maximum of £2,100 a month;
• employers will not be required to contribute towards wages and only asked to cover National Insurance contributions and pension contributions;
• businesses will only remain eligible for grants while subject to restrictions, and while the scheme is operating (from 1 November 2020 for a six month period);
• employees must be off work for a minimum of seven consecutive days in order to qualify; and
• it covers the whole of the UK, with the government working with the devolved administrations to ensure the scheme operates effectively across all four nations.

In addition, the government advises that to be eligible, employees must be employed and an RTI submission notifying payment in respect of that employee must have been made to HMRC on or before 23 September 2020.

For more information, see Job Support Scheme expanded to firms required to close due to COVID Restrictions from gov.uk