This morning Mr Rishi Sunak, the Chancellor of the Exchequer, announced a new and more generous support scheme in order to help businesses and workers in Tier 2 areas.
With these changes, workers will have to do a minimum of 20% of their normal working hours in order to qualify.
Employees who are enrolled on the scheme will receive 61.67% of their wages from the government, while the employers will only have to contribute 5% of the hours not worked (in addition to 20% for the worked hours).
Instead, the rule previously introduced, which still applies to Tier 1 areas, states that employees must work at least 33% of their normal working hours and businesses must pay 55% of their salaries, while the government is only responsible for paying 22% of the employees’ wages.
Employees working for businesses in Tier 3 zones, which are obliged to close by law, will get 67% of their wages paid for by the Government, up to a maximum of £2,100 per employee per month.
Today the Chancellor has also announced that grants for self-employed workers in Tier 2 areas will also double to cover 40% of previous earnings, up to £3,750, and new grants for businesses in high alert areas will be made available.
This is the second major amendment after the Job Support Scheme, which will replace the furlough scheme from November 1, was announced last month.
These changes will help in particular pubs, bars and restaurants in Tier 2 areas.
For more information on the new Job Support Scheme, please contact us at info@well-tax.com or follow us on our social media.
