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NEWS: Chancellor announces additional Covid-19 financial support for businesses and self-employed

Since announcements made at the end of September, Rishi Sunak MP, the Chancellor of the Exchequer, has today set out additional changes to the government’s financial plan to support jobs and the economy. Key changes are to the Job Support Scheme (JSS) and Self-employed Grant detailed below.

Job Support Scheme (JSS)

  • Today’s announcement reduces the employer contribution to those unworked hours from 33% to just 5%, and reduces the minimum hours requirements to 20%, so those working just one day a week will be eligible.
  • The JSS starts to operate from 1 November and covers all Nations of the UK. For every hour not worked, the employee will be paid up to two-thirds of their usual salary.
  • The government will provide up to 61.67% of wages for hours not worked, up to £1541.75 per month (more than doubling the maximum payment of £697.92 under the previous rules).

Self-employed grant

  • Today’s announcement increases the amount of profits covered by the two forthcoming self-employed grants from 20 per cent to 40 per cent, meaning the maximum grant will increase from £1,875 to £3,750.
  • It will be available to anyone who was previously eligible for the SEISS grant one and grant two, and meets the eligibility criteria.
  • The extension will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.
    • The first grant will cover a three-month period from the start of November 2020 until the end of January 2021. The government will pay a taxable grant which is calculated based on 40% of three months’ average trading profits, paid out in a single instalment and capped at £3,750.
    • The second grant will cover a three-month period from the start of February until the end of April 2021. The government will review the level of the second grant and set this in due course.

Read the full announcement here.

Liz Bayram, Chief Executive at PACEY comments:
"The Chancellor has announced improved financial support through his Job Support Scheme as well as some improvement to the help the government is offering self-employed people. All in recognition of the ongoing damage the virus is causing our economy as well as our health. Of course this extra financial support will help some. But we continue to try to persuade government to do more to support early education and childcare providers; services that are struggling with low occupancy levels and temporary closures due to suspected outbreaks."