What are the new support measures for workers and businesses in tier 2?

What are the new support measures for workers and businesses in tier 2?

UPDATE: The Chancellor announced changes to the furlough scheme on Thursday 17th December - the update can be read here.

The Chancellor, Rishi Sunak, has just made a statement increasing support to employers in Tier 2 areas of the country (22nd October 2020).

He made the announcement after pressure increased on the government to better support businesses that will suffer as more areas are put into local lock downs, and told the House of Commons that "even businesses not forced to shut were facing profound economic uncertainty".

Big changes to the Coronavirus Job Support Scheme, which was part of his winter economic plan and replaces the furlough scheme in November, were announced. Chris Dobbs provides an overview.

New support for businesses in local lockdown tier 2

There is a new grant scheme for businesses in Tier 2, even if they do not have to close.

There will be direct grants from local authorities up to £2,100 each month, so 70% of the £3,000 available to Tier 3 businesses that have to legally close. The grants can be backdated to August.

Support for workers in tier 2 local lock down

The Job Support Scheme is being made more generous, even for businesses that remain open. The 33% requirement to work will be reduced to 20% and the employer's contribution reduced from 33% to 5%.

You can read about the JSS in our previous article here.

Support for self-employed in local lock down

The support for the self-employed will be increased from 20% to 40%, up to £3,750 per month.

A HR & Employment Specialist's view on the new measures

Chris Dobbs, solicitor in our specialist employment & HR team on the new support measures for businesses and the self-employed in local lock down.

"There is already speculation that this will not be enough to support businesses in these areas with the Shadow Chancellor attacking the ‘patchwork of poor ideas’.

The change to the JSS may be the most welcome for the hospitality sector although it does not change the fact that employers must still establish whether they can continue to pay a fifth of the salaries of staff they wish to retain.

With the promised grants being made available to local authorities to distribute, there is also no guarantee that every business in an affected area will receive this as a cash sum."

Specialist Employment Solicitors in Bournemouth, Poole, Christchurch and The New Forest

Our specialist employment law & HR team have advised many businesses and employees on such matters. 

We offer a free initial chat with one of our bright, friendly lawyers to all new clients. Call us on 01202 499255 or visit the contact us page to get in touch.

Employment law updates 

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