Job Support Scheme | new help if salon forced to close

Rishi Sunak has announced 2 further measures:

An extended version of the Job Support Scheme, and additional grants. We look at these both below.

1. Extended version of the Job Support Scheme

The Government’s Job Support Scheme (JSS) announced in September will be extended to protect jobs and to support businesses that are legally required to close down due to coronavirus restrictions.

If your salon is told to close under Coronavirus measures (eg a full local lockdown),  the Government will pay two thirds of your employees’ salaries under this extended scheme.

Eligible salons will be able to claim two thirds of each employees’ salary, up to a maximum cap of £2,100 per month. A sort of Furlough scheme version 3.

Salon owners will however be asked to pay the employer’s  NIC and pension contributions.

Businesses are only able to claim the grant whilst subject to the restrictions, and employees have to be off work (on furlough) for a minimum of seven consecutive days. The scheme is UK wide, and the UK Government has confirmed that it will work alongside the devolved administrations, ensuring that the scheme works effectively in all four nations.

The scheme will be open from 1 November 2020, and will run for a period of six months, but will be reviewed in January 2021.

Payments will be made in arrears and made through a HMRC claims service, which it has been confirmed will be available from early December 2020.

In summary:

Until 31 October – salons are covered by the Job Retention Scheme (CJRS).

From 1 November 2020 – 31 March 2021, either of:

• If salon not forced to close – Job Support Scheme (the Government paying 1/3rd of hours not worked)
• If salon forced to close – Job Support Scheme (the Government paying 2/3rd of salaries)

2. Additional grants

The Government’s second announcement is to increase the amount of grant paid to businesses in England that are shut due to local lockdowns from the previously announced £1,500 per month, paid every three weeks, to a maximum of £3,000 per month, paid every two weeks.

The smallest salons can now claim £1,300 per month, medium sized ones can claim £2,000 per month, and larger salons can claim £3,000, all paid in two fortnightly instalments.

The devolved administrations in Scotland, Wales and Northern Ireland will also receive an additional £1.3 billion to their guaranteed funding for 2020-21, to help with the response to the outbreak of coronavirus.

Additional guidance on the extended JSS will be issued in due course.

Further reading:

Job Support Scheme | A practical run through