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Government's safety net for closed businesses

View profile for Helena  Oxley
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Governments safety net for closed businesses

Today, Rishi Sunak announced an expansion of the Job Support Scheme and the introduction of grants to businesses which he says will ‘significantly strengthen our toolkit for protecting jobs and businesses over the weeks and months to come.’

Key takeaways:

  • The expansion is to protect jobs and support businesses legally required to close their doors as a result of coronavirus restrictions for one week or more
  • An employer will then pay two-thirds of the workers' normal salary, up to £2,100 a month, and the government will cover the cost
  • The scheme applies to all business premises legally required to close, including those told to operate on a collection only or delivery basis
  • Employers will have to pay Employer NI and pension contributions
  • Cash grants that will never have to be repaid will also be available:
    • smallest businesses (properties worth £15,000 or less): £1,300 per month
    • medium-sized businesses (properties worth between £15,000 and £51,000): £2,000 per month
    • larger businesses (properties worth £51,000 or more): £3,000
  • Grants will be paid in fortnightly instalments

If you need advice on the above, contact our specialist employment lawyers. I can be contacted on 01206 217624 or helena.oxley@birkettlong.co.uk.

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