Last week the Chancellor announced additional support for UK businesses forced to close and, on Monday, we received confirmation from the Prime Minister as to the new three tier lockdown system.
If your business is legally required to close under new restrictions, what does this new support mean that you are entitled to?
1. Access to Job Support Scheme, fully subsidised
Our blog of 24 September outlines how the new Job Support Scheme, which will replace the Job Retention Scheme in November, will work in practice, with both the government and employers topping up salaries.
Under the extension of the scheme, announced on 9 October, it was confirmed that any business that is legally required to close for at least one week as a result of local lockdown will receive 67% of each of their employees’ pay, fully subsidised by the government, up to a maximum of £2,100 a month. Businesses required to close as a result of specific workplace outbreaks by local public health authorities are not eligible for this scheme.
The scheme will pay the 67% as a grant to the employer, calculated based on the number of eligible employees who have been instructed to cease work. Employers will be asked to cover National Insurance and pension contributions, but will not be required to make any contribution to wages (unless they wish to top up their employees’ pay).
In line with the rest of the Job Support Scheme, payments will be made in arrears through HMRC’s claims service, which is expected to open in early December. The scheme will begin on 1 November and is expected to run through to April, with a planned review to take place in January.
2. Access to increased cash under the Local Restrictions Support Grant
The existing Local Restrictions Support Grant scheme enables businesses to claim a cash grant of between £1,000 and £1,500, depending on their size, for every three weeks they are closed.
As part of the increase in cash grants, businesses forced to close by local or national lockdown will be able to claim up to £3,000 per month, subject to the rateable value of the business’s property. This will be paid in fortnightly instalments.
| Rateable value | Cash grant available |
| under £15,000 | £667 per two weeks of closure / £1,334 a month |
| £15,000 – £51,000 | £1,000 per two weeks of closure / 2,000 a month |
| over £51,000 | £1,500 per two weeks of closure / £3,000 a month |
How can we help?
If you have new business concerns following the latest updates, or would like help navigating the support you can access, contact your usual relationship practitioner, email intouch@haroldsharp.co.uk or call us on 0161 905 1616.