Extension To The Job Support Scheme – Government To Pay Employees Of Closed Businesses Two-Thirds Of Their Salary

The Government has announced an extension to the Job Support Scheme whereby employees of UK businesses who are forced to close due to coronavirus restrictions will receive two-thirds of their pay.

The Scheme, which is due to come into force on 1^st November and will be available for six months, was originally outlined by the Government last month and is designed to protect viable jobs in companies who are facing reduced demand due to the impact of Covid-19.

The Scheme works on the basis that an employee works a minimum of 33% of their normal working hours and for the remaining hours not worked, employers and the Government each pay one third (22%) of the employees’ equivalent salary (therefore, the employee receives at least 77% of their normal working pay).

What is the extension to the Job Support Scheme?

The extension outlined by Rishi Sunak on Friday applies to all companies who are by law forced to close their premises due to national or local lockdown restrictions. Were this to happen to a business, the Government would pay two-thirds of their employees’ salaries, up to a maximum of £2,100 per month per worker.

Employers would not have to contribute to the employees’ pay in any way other than National Insurance and pension contributions.

Businesses which have to close will only be able to claim the grant in respect of their employees while they are subject to the national or local restrictions, and their workers have to be off work for at least seven consecutive days.

As with other aspects of the Job Support Scheme, employers will be reimbursed in arrears for the payments through a HMRC claims service which will be available from the start of December. For employees of businesses who are forced to close before the end of this month, they will be eligible for payments through the Coronavirus Job Retention Scheme (CJRS).

Upon announcing the extension to the Job Support Scheme, Rishi Sunak, commented:

“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.”

The extension to the Job Support Scheme comes ahead of new major restrictions, expected to be announced today, which could mean that in the worst affected areas of the UK (such as Nottingham and Liverpool) certain businesses will be legally forced to close.

Further information on the Job Support Scheme extension can be found here.