Support for businesses forced to close

Support for businesses forced to shut due to coronavirus restrictions

Just a fortnight after announcing the new Job Support Scheme, the Government confirmed on 9 October that they will be providing further support for employees who work for UK businesses forced to shut by law because of coronavirus restrictions.

The new 67% additional support scheme

This latest scheme aims to protect jobs and enable businesses to reopen quickly once restrictions are lifted and will only apply to businesses told to close, rather than those who choose to shut because of the broader impact of Covid restrictions.

  • Employees impacted will get two-thirds of their wages paid for by the government
  • With grants paid to employers up to a maximum of £2,100 per employee a month
  • The scheme begins on 1 November and will run for six months
  • But the scope will be reviewed in January 2021
  • Until November businesses that are asked to close can continue to use the existing Furlough scheme

Other Government support for jobs:

The new 22% Job Support Scheme – starting on 1 November

Announced by Chancellor Rishi Sunak on 24 September, the Job Support Scheme will run for six months from 1 November and will top up salaries in firms which can’t afford to pay employees their normal full-time hours.

  • To be eligible, employees must work for at least one-third of their normal hours
  • For the hours not worked, the government and employer will each pay one-third of the remaining wages
  • This means the employee would get at least 77% of their pay, including amount 22% funded by the Government

Coronavirus Job Retention / Furlough Scheme – ending on 31 October

The existing Furlough Scheme, which terminates on 31 October covered:

  • 80% of wage costs up to £2,500 cap (until 31 August)
  • 70% up to £2,187.50 cap (from September)
  • reducing to 60% up to £1,875 cap (from October)
  • The scheme closed to new entrants from 30 June and staff must have been furloughed by 10 June