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UK government expands Covid-19 support package

By Huw Hughes

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Business

UK chancellor Rishi Sunak has announced additional financial support for jobs and businesses as the country grapples with a growing number of Covid-19 cases and new lockdown restrictions.

As part of the new measures, the Job Support Scheme, which will come into effect on 1 November and looks to replace the furlough scheme, has been made “more generous”. Announced in September, the scheme would initially see employers paying a third of their workers’ wages for hours not worked, and required employers to be working 33 percent of their normal hours.

Now, employer contributions to those unworked hours have been reduced to 5 percent, and the minimum hours requirements have been reduced to 20 percent, so those working just one day a week will be eligible.

New support for workers and businesses

There will also now be cash grants of up to 2,100 pounds per month primarily for businesses in the hospitality, accommodation and leisure sector adversely impacted by the restrictions in high-alert level areas. The grants will be available retrospectively so can be backdated to August.

The government has also increased the amount of profits covered by its new self-employed grant scheme from 20 percent to 40 percent, meaning the maximum grant will increase from 1,875 pounds to 3,750 pounds.

Sunak said: “I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today. These changes mean that our support will reach many more people and protect many more jobs.

“I know that the introduction of further restrictions has left many people worried for themselves, their families and communities. I hope the government’s stepped-up support can be part of the country pulling together in the coming months.”

Photo credit: FashionUnited

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