Job Support Scheme adjustment offers further support for viable jobs

No primary category set

Today the chancellor announced an adjustment to the Job Support Scheme, effectively doubling the support the government is offering to businesses. This is in recognition of firms struggling to survive – not just those forced to close but also those in the supply chain who are also being impacted by the loss of trade.

Whilst this is a recognition that business in Tier 2 and Tier 3 regions are devastated, the new schemes are available across the entire UK. They are in addition to the financial assistance given directly to the regions which have entered Tier 3.

“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.”
– Rishi Sunak

Grants for Tier 2

There is a new grants scheme for businesses impacted by Tier 2 restrictions, even if they aren’t legally closed. Funding is being put in place to give every business in hospitality, leisure & accommodation a grant worth up to £2,100 every month Tier 2 restrictions apply.

These are additional to the grants of up to £3,000 available for businesses who have been legally required to close. The grants are retrospective grants, so businesses can backdate them to August, if they’ve been operating in areas with enhanced restrictions since then.

Job Support Scheme for businesses required to close

For businesses legally required to close, employers will pay people two thirds of their normal salary where they can’t work for a week or more; and the government will cover 100% of those costs.

Job Support Scheme for businesses that remain open

For businesses that remain open but are struggling financially due to loss of business, the Open Job Support Scheme is being made more generous to protect jobs during lower demand. The Government now pays at least 62% for hours not worked, the employer contribution is to be cut from 33% to 5% and employees will now take home at least 73% of pay for working a new minimum 20% of hours.

This leaves employers paying for 20% of hours worked plus 5% of hours not worked but increases the Government contribution from about 22% to just under half. Employers will still face tough choices on whether the job role is still viable and calculate if they have the funds to foot the reduced salary or if they are forced to make the employee redundant.

Self Employed

The chancellor is doubling self-employed grants from 20% to 40%, meaning the maximum grant will go up from £1,875 to £3,750.

Grants are available for all self-employed people (all tiers) who’ve stopped trading or have a significant fall in trade, with two further payments to come.



Sajid Javid thanks Volo for NHS PPE Portal expertise


Living with Covid – Coronavirus update


Does end of Covid restrictions end Royal Mail excuses?


Government measures to reduce immediate impact of Energy Prices


Covid test kits to be available in 10,000 PayPoint conveniences stores

ChannelX Guide...

Featured in this article from the ChannelX Guide – companies that can help you grow and manage your business.


Take a look through a selection of the latest articles on ChannelX

Register for Newsletter

Receive 5 newsletters per week

Gain access to all research

Be notified of upcoming events and webinars