Team Lopez - Today, the Chancellor announced a package of measures with increased support to ensure that businesses and employees have the certainty and support they need to get back on their feet.
Coronavirus Job Retention Scheme
The Coronavirus Job Retention Scheme will be extended until the end of March 2021. This will see 80% of wages for hours not worked covered by the government, up to a maximum of £2,500, and the employer will only have to cover National Insurance and Employer pension contributions.
This policy will be reviewed in January to decide whether economic circumstances are improving enough to ask employers to contribute more.
Job Retention Bonus
As the CJRS is being extended until the end of March, the policy intention of the Job Retention Bonus falls away and will therefore not be paid in February. The government will instead redeploy a retention incentive at the appropriate time.
The government is increasing support to the self-employed to an overall level of 80% of trading profits for the third Self-Employment Income Support Scheme grant, covering November to January.
This provides broadly equivalent support to the self-employed as provided to employees through the government contribution in the CJRS. It is calculated based on 80% of 3 months’ average trading profits, paid out in a single instalment and capped at £7,500. The Treasury has confirmed that there will be a fourth SEISS grant to cover February to April; further details will be set out in due course.
On top of the above policies, the Chancellor announced that the upfront guarantee of funding for the devolved administrations is increasing once again from £14 billion to £16 billion. This uplift will continue to support people, business and individuals in Scotland, Wales and Northern Ireland.
These chances build on the comprehensive and generous £200 billion package of support which the government have already committed to tackling coronavirus – including loans, grants, tax cuts and deferrals, mortgage holidays and increases to welfare. More details can of these changes can be found in the attached factsheet below.