• Eamonn Watson

COVID SUPPORT THAT'S ON HOLD FOR NOW

Updated: Nov 6, 2020

In this section of the support hub we cover some of the support that has been postponed during the winter lockdown that began on November 5th.


TIER THREE GRANTS FOR CLOSED BUSINESSES


TIER TWO GRANTS FOR OPEN BUSINESSES


JOBS SUPPORT SCHEME - OPEN & CLOSED



TIER THREE - BUSINESS LOCAL RESTRICTIONS GRANTS


HOW DOES TIER THREE LRSG COMPENSATION WORK? :-


Local Authorities are responsible for administering payments of grants to all businesses forced to close by law, as the result of being placed in the highest Covid Alert Tier.

An online application system will allow all eligible businesses to register for the fortnightly payment based upon their rateable value.


This will be available from the website of each relevant Local Authority.


Ongoing fortnightly, Local Restriction grant payments to assist with fixed costs will be triggered automatically whilst the business remains closed by law, after the initial payment.


HOW MUCH WILL EACH BUSINESS BE ENTITLED TO? :-


  • Properties with an rateable value of £51,000 or over will receive grants of £1500 per two weeks of closure (£3,000 per month).


  • Properties with a rateable value between£15,000 and £51,000 will receive grants of £1,000 per two weeks of closure (£2,000 per month).


  • Properties with a rateable value of £15,000 or under will receive grants of £667 per two weeks of closure (£1,334 per month).


  • The grants are "per property", this means if you have a business with more than one premises, such as a restaurant with two branches that are both forced to close, you will receive two grants


  • As with other Covid business grants, local grants to closed businesses will be treated as taxable income


  • Venues that had already been forced to remain closed like nightclubs will be eligible

On October 22nd it was confirmed that :-


Businesses in Very High alert areas qualify for greater support whether closed or open.


In the latter case, support is being provided through business support packages provided to Local Authorities as they move into the alert level. The government is working with local leaders to ensure the Alert Level very high packages are fair and transparent.


In areas which have been previously living under equivalent Tier 2 restrictions on socialising for several months, before the tiering system was introduced funding for these areas will be backdated until the point at which these restrictions began.


Further eligibility criteria may be determined by Local authorities including potential, discretionary funds made available to businesses forced to close, that do no have their own rateable value will be made by each local authority, after funds are allotted by central government.

The Government set a baseline of measures for any area in this local alert level.

Consultation with local authorities will determine additional measures.


The baseline means the below additional measures are in place:

  • Pubs and bars must close, and can only remain open where they operate as if they were a restaurant - which means serving substantial meals, like a main lunchtime or evening meal. They may only serve alcohol as part of such a meal.

  • Wedding receptions are not allowed

  • People must not meet with anybody outside their household or support bubble in any indoor or outdoor setting, whether at home or in a public space. The Rule of Six applies in open public spaces like parks and beaches.

  • People should try to avoid travelling outside the ‘Very High’ area they are in, or entering a ‘Very High’ area, other than for things like work, education, accessing youth services, to meet caring responsibilities or if they are in transit.

  • People should avoid staying overnight in another part of the UK if they are resident in a ‘Very High’ area, or avoid staying overnight in a ‘Very High’ area if they are resident elsewhere.

The Very High tier will also benefit from the proposed financial compensation package of 67% furlough for all staff under the Job Support Scheme Extension, and Local Restrictions Support Grant whilst venues remain closed.


L.A. GRANTS :- BUSINESSES HIGH ALERT (TIER 2) AREAS


Government is providing additional funding to allow Local Authorities (LAs) to support businesses in high-alert level areas, which are not legally closed, but which are severely impacted by the restrictions on socialising.


In areas which have been living under equivalent Tier 2 restrictions on socialising for several months, before the tiering system was introduced funding for these areas will be backdated until the point at which these restrictions began.


The funding each Local Authority will receive will be based on the number of hospitality, hotel, B&B, and leisure businesses in their area.


LAs will receive a funding amount that will be the equivalent of:

  • RV of £15,000 or under - £ 934 per month

  • RV over £15,000 and below £51,000 - £1,400 per month

  • RV of 51,000 and over - £2,100 per month


  • This is equivalent to 70% of the grant amounts given to legally closed businesses (worth up to £3,000/month).


  • Local Authorities will also receive a 5% top up amount to these implied grant amounts to cover other businesses that might be affected by the local restrictions, but which do not neatly fit into these categories.


  • It will be up to Local Authorities to determine which businesses are eligible for grant funding in their local areas, and what precise funding to allocate to each business – the above levels are an approximate guide.

THE JOB SUPPORT SCHEME


The Job Support Scheme which was due to replace the Job Retention Scheme from November 1st 2020 has been postponed after the extension of the JRS until March 31 2021.


Overview of the scheme


Check if you can claim the Job Support Scheme

Check if you can claim the Job Support Scheme Open if your business is still operating

Extra steps to take before calculating your claim through the Job Support Scheme Open

Check if you can claim the Job Support Scheme Closed if your business is closed

Check how different employment conditions affect eligibility for the Job Support Scheme

Find examples to help you calculate your employee's wages for the Job Support Scheme

Complete a Financial Impact Test if you’re a large employer claiming through the JSS Open

Claim the Job Support Scheme

Calculate how much you can claim through the Job Support Scheme

Steps to take before calculating your claim through the Job Support Scheme

Complete a Financial Impact Test if you’re a large employer claiming through the JSS Open



JOBS SUPPORT SCHEME CLOSED


Employers who are legally required to close their premises (JSS Closed)


For these businesses, the Job Support Scheme, through JSS Closed, will help them through the period that they are directly affected by these restrictions by supporting the wage costs of employees who have been instructed to cease work in eligible (closed) premises.


Each employee who cannot work due to these restrictions will receive two thirds of their normal pay, paid by their employer and fully funded by the government, to a maximum of £2,083.33 per month, although their employer has discretion to pay more than this if they wis .

Employees may also be entitled to additional financial support, including Universal Credit.


Cash local restriction support grants for businesses required to close in local lockdowns are also increased to up to £3,000 per month


Under the scheme, employers will not be required to contribute towards wages and only cover NICS and pension contributions.


Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days.


The scheme will begin on 1 November and will be available for six months, with a review point in January.


In line with the rest of the JSS, payments to businesses will be made in arrears, via a HMRC claims service that will be available from early December.


Employees of firms that have been legally closed in the period before 1 November are eligible for the CJRS.


The scheme is UK wide and the UK Government will work with the devolved administrations to ensure the scheme operates effectively across all four nations.

JOBS SUPPORT SCHEME OPEN



Employers facing decreased demand


Many employers can operate safely but continue to face reduced demand so they may need extra support over the winter to help keep their employees attached to their workforce. For these employers, the Job Support Scheme, through JSS Open, will give employers the option of keeping their employees in a job on shorter hours rather than making them redundant.


Recognising the evolving situation with the pandemic and health restrictions, and the pressures employers are facing this winter, the government has announced that it will increase the scale of support available to employers through JSS Open above what was initially announced, in order to protect more jobs.


The employee will need to work a minimum of 20% of their usual hours and the employer will continue to pay them as normal for the hours worked. Alongside this, the employee will receive 66.67% of their normal pay for the hours not worked - this will be made up of contributions from the employer and from the government.


The employer will pay 5% of reference salary for the hours not worked, up to a maximum of £125 per month, with the discretion to pay more than this if they wish.


The government will pay the remainder of 61.67%, of reference salary for the hours not worked, up to a maximum of £1,541.75 per month.


This will ensure employees continue to receive at least 73% of their normal wages, where they earn £3,125 a month or less

The JSS was designed to sit alongside the Jobs Retention Bonus for workers who have been furloughed – and are kept on until the start of February 2021.


Businesses can benefit from both schemes in order to help protect jobs.


We have a separate blog on the Job Retention Bonus of £1,000 per furloughed worker, which was due to be payable in February, but was postponed to be replaced with another incentive to be announced at the end of the furlough extension on March 31, 2021


We're here to help you through Covid together, so T+G's support blog is updated every day.


For any advice you need, just call 01995 600 600, or

email our dedicated, support team at covid19@tagac.co.uk

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