What financial support will be available under the Job Support Scheme for businesses that are required to close under coronavirus restrictions?

Note: The Job Support Scheme was due to open on 1 November 2020, following the closure of the Coronavirus Job Retention Scheme. However, the Government has announced that the Coronavirus Job Retention Scheme will remain open until 31 March 2021 and the introduction of the Job Support Scheme has been postponed.

It is possible that changes will be made to the terms of the Job Support Scheme before it comes into force.

On 9 October 2020, the Chancellor announced that the Job Support Scheme would be expanded to provide financial support to businesses that are legally required to close under coronavirus (COVID-19) restrictions, in a local or national lockdown.

Under this part of the scheme (which the Government refers to as the "JSS Closed"), employers will be able to claim a grant from HM Revenue and Customs (HMRC) to cover 67% of employees' wages, up to a maximum of £2,083.33 a month per employee. Employers will be able to claim for employees who do not work for at least seven consecutive days due to the closure of the business.

The employer will be responsible for paying national insurance contributions and auto-enrolment pension contributions as usual but will not be required to contribute towards employees' wages.

Employers will be able to claim for payments in arrears through an online claim service.

Separate funding is available under the Job Support Scheme for businesses that are permitted to remain open under local or national coronavirus restrictions. The Government has published a policy paper covering both parts of the scheme.