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Plans for Jobs: increased financial support

Thursday 22 October 2020

The UK Government announced today, 22 October, further funding added to the new Job Support Scheme for businesses facing more hardship through the tiered systems introduced last week.

In the Chancellor of the Exchequer, Rt Hon Rishi Sunak’s statement, he provided details of additional economic support to those in tiers 2 and 3, outlining that the Government is responding to the ongoing changing circumstances.

Sunak emphasised that a regional approach was the most effective means of controlling the Coronavirus and reiterated the existing support available to those businesses who were forced to close, which included £1bn of local upfront grants for those in tier 3.

Local restrictions support grant (LRSG)

Economic hardship experienced by sectors, such as the hospitality industry, will see an additional boost to the support grant scheme with business grants expanded to cover those in particularly affected sectors in high-alert level areas.

The grant scheme for businesses impacted by tier 2 will be retrospective and backdated to August and will give Local Authorities the power to distribute direct grants of up to £2,100 for every month they remain in tier 2. Check eligibility on the GOV.UK website.

Job Support Scheme

The short-term work scheme will be amended so that employees need only work 20 per cent of their hours to be eligible and employer contributions will be reduced to 5 per cent. All businesses will be eligible whether they are closed or not.

Self-employed grants

Support for the self-employed will be doubled from 20 per cent to 40 per cent of people’s income. The grant will increase from £1,875 to £3,700 covering November to January, with a further grant to follow covering February to April.

Funding

Further details of the existing and extra funding for individuals and businesses can be found in the statement by The Chancellor, with links to fact sheets on Business Grants and the Job Support Scheme, which will start to operate from 1 November covering all nations in the UK. 

 

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I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today. These changes mean that our support will reach many more people and protect many more jobs.

I know that the introduction of further restrictions has left many people worried for themselves, their families, and communities. I hope the government’s stepped-up support can be part of the country pulling together in the coming months.

Rt Hon Rishi Sunak MP, Chancellor of the Exchequer