Government announces extension to Job Support Scheme

The Chancellor has announced an extension to the Job Support Scheme targeted at businesses required to close entirely due to tighter local or national coronavirus restrictions. Under these new announcements, the government will pay two-thirds of wages for businesses forced to close in the coming months and offer cash grants of up to £3,000 per month for businesses as it seeks to slow the rise in coronavirus cases.

This Scheme will replace the existing furlough scheme from 1 November and will run for 6 months.

Under the extension: Businesses that are told to close will receive two-thirds of their employees’ wages, subject to a cap of £2,100 a month. This is more generous than what was originally announced in respect of the Job Support Scheme, which will provide ongoing wage support for people working at least 33% of their usual hours, but is less generous than the original Job Retention Scheme – the furlough scheme, which initially subsidised up to 80 per cent of wages, up to a maximum of £2,500 a month.

In the face of rapidly increasing cases of Covid-19, pressure had been mounting on the government to introduce targeted support for these businesses.

Full details of the Job Support Scheme can be found on the government website here.


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