Sunak expands Covid job support scheme measures as cases rise
Finance Minister forced to give more after pressure from employers
The UK government on Thursday unveiled an expansion of its furlough replacement scheme with the Treasury paying a greater share of workers’ wages to protect companies struggling under new regional Covid-19 restrictions.
Finance Minister Rishi Sunak announced the new measures as the government faced mounting criticisms overs its failures in handling the coronavirus pandemic. He told MPs he would launch a new grant scheme for firms facing tier 2 controls and cut the level of employer contribution companies have to make in return for receive wage subsidies under the job support scheme (JSS).
The JSS was meant to come into effect at the end of October and replaces the multibillion-pound furlough programme. Sunak reduced the level of employer contribution to 5% of a workers’ usual wage, down from 33%. He also announced more generous support for jobs across the UK and doubled grants for the self employed.
Sunak said “open but struggling” businesses in Tier 2 lockdown areas could now claim up to £2,100 a month. The grants for businesses in hospitality, leisure, and accommodation will be backdated to August, meaning businesses under restrictions can claim up to £4,200 from today.
Grants for the self-employed were doubled to 40%, meaning the maximum grant will go up to £3,750 from £1,875. 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, Sunak said.
"In businesses legally required to close, as I’ve already announced, 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," he added.
Institute of Directors director-general Jonathan Geldart said the new scheme "should go some way to easing company directors’ fears".
"A substantial reduction in the employer contribution is a crucial step, reflecting our members’ concerns. Taking a national approach will help to cut through the confusion of different tiering systems and backroom political negotiations. Directors need clarity on what support will be available so they can chart a way forward for their organisations."