The vacation program, which was supposed to end on October 31, is to be extended by an additional six months for all companies that have to close due to lockdown rules.
The government is expected to announce strict new rules on Monday that could result in pubs and restaurants having to close their doors again – like in the summer.
The new vacation rules are part of the Jobs Support Scheme and pay 67 percent of the salary of any company employee forced to close during the lockdown.
Pubs and licensed venues will close as early as 6pm in parts of Scotland this evening.
For England, new lockout rules are expected to be announced on Monday. It is believed that they will force the closure of licensed facilities in areas with high rates of covid – such as the Northeast, Northwest and Midlands.
The government’s Job Support Scheme (JSS) is expanding to protect jobs and support companies that are forced to close their doors due to coronavirus restrictions, the Chancellor announced today.
As part of the expansion, companies whose operations are legally required by local or national restrictions to close for some time over the winter will receive grants to pay the wages of employees who cannot work, which protects jobs and enables companies to go after closure quickly reopen the restrictions.
The government will support eligible businesses by paying two-thirds of each employee’s salary (or 67%) up to a maximum of £ 2,100 per month.
Chancellor of the Exchequer Rishi Sunak said: “During the crisis, the driving force of our economic policy has not changed.
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“I have always said that we will do whatever it takes to protect jobs and livelihoods as the situation develops.
“The expansion of the Job Support Scheme will provide a safety net for companies across the UK who have to temporarily close their doors and give them the right support at the right time.”
Under the system, employers are not required to make wage contributions and only need to cover NICS and pension contributions, a very small proportion of total employment costs. It is estimated that around half of the potential entitlements are unlikely to have any employer NICs or auto-enrollment contributions and therefore no employer contribution.
Companies can only take advantage of the grant as long as they are restricted and employees must be incapacitated for at least seven consecutive days.
The program begins November 1st and will be available for six months, with a review point in January. In line with the rest of the JSS, retrospective payments to companies will be made through an HMRC claims service, which will be available in early December. Employees of companies that were legally closed prior to November 1st are eligible for the CJRS.
The program covers the whole of the UK and the UK government will work with the decentralized administrations to ensure that the program works effectively in all four countries.
This goes hand in hand with an intensive discussion with local managers about possible measures that are pending in their areas.
In addition to expanding the JSS, the government is increasing cash grants for businesses in England that have closed due to local lockdowns to help with fixed costs. These grants are tied to taxable values with up to £ 3,000 per month payable every two weeks, compared to the previously available up to £ 1,500 every three weeks. This could benefit hundreds of thousands of businesses including restaurants, pubs, nightclubs, bowling alleys and many more.
Decentralized administrations in Scotland, Wales and Northern Ireland are expected to increase their guaranteed funding by $ 1.3 billion for 2020-21.
These measures are backed up alongside the original JSS – designed to help companies facing low demand during the winter months – and the £ 1,000 Job Retention Bonus (JRB), which encourages employers to keep their employees on payroll.
They build on the broader package of unprecedented government actions to protect, create and support jobs during the pandemic to ensure no one is left without hope or opportunity.
Further guidance on the program will be published by HMRC in due course.
This rule applies to companies that are required by law to close their business premises due to restrictions imposed by one or more of the four UK governments. This includes companies that only need to provide delivery and pick-up services from their premises or outdoor food and drink from their premises.
Under the program, workers must be given leave of absence for at least seven consecutive days, and payments to employers are paid monthly in arrears.
The government is now making their program more generous so that companies that lose money can get up to £ 3,000 per month instead of £ 1,500 per three weeks and are eligible to pay after just two weeks of closure instead of three weeks earlier.
Small businesses with a taxable value of £ 15,000 or less can now claim £ 1,300 per month; medium-sized companies with a taxable value between £ 15,000 and £ 51,000 can claim £ 2,000 per month; and larger companies can ask for £ 3,000.
The government is also extending the rule to companies that have had to close at the national rather than the local level
In July, the government announced a guarantee that decentralized administrations in Scotland, Wales and Northern Ireland will receive at least £ 12.7 billion in additional resource funding this year.
Today the UK government is raising this by £ 1.3 billion to at least £ 14 billion. That means at least £ 7.2 billion for the Scottish government, £ 4.4 billion for the Welsh government and £ 2.4 billion for the Northern Irish executive on top of their spring budget 20 resources.
It will continue to help local authorities. Those with the highest incidence will continue to receive targeted funding based on population size to support testing, tracking and containment of activity at this stage of the national Covid-19 response. This comes on top of the € 3.7 billion in grants.