Chancellor Rishi Sunak announces new Covid financial support package for jobs
As the furlough scheme comes to an end at the end of October, Chancellor Rishi Sunak announced the new Covid financial support package.
He added further details to the Jobs Support Scheme, which will replace furlough, with the government covering two thirds of employees' wages if businesses are forced to close.
Sunak laid out the three key planks of his economic support strategy:
“First, introducing a new grant scheme for businesses impacted by tier 2 restrictions even if they aren’t closed," he said.
It will be up to local authorities to decide how to distribute the cash grants.
The Chancellor confirmed there will be enough funding for every business in the hospitality, leisure and accommodation sector to get £2,100 for every month tier 2 restrictions will apply.
Sunak said: “That is equivalent to 70% of the value of the grants available for closed businesses in Tier 3.”
The grants can be backdated to August if businesses have already been under restrictions.
Sunak announced the Job Support Scheme will be extended for businesses that have to close. The government will now cover the full cost of two thirds of employees salaries where they can't work for a week or more.
For business that remain open and face higher restrictions Sunak beefed up the support for employees, with the minimum hours requirement reduced to 20% and employer contribution reduced to 5% of salaries.
Finally, Sunak said the government is doubling the next round of the self-employed income support from 20% to 40% of incomes, increasing the maximum grant to £3,750.
"This is our plan. A plan for jobs, for businesses, for the regions, for the economy, for the country. A plan to support the British people," Sunak finished his speech with.