EXPLAINED: Sunak’s new measures to protect jobs

Chancellor Rishi Sunak announced on Thursday new measures to help protect jobs, easing the eligibility for his jobs support scheme, reducing the cost for employers, and announcing new cash grants.

Below are the key measures:

JOB SUPPORT SCHEME

Sunak announced major changes to the Job Support Scheme designed to prevent employers from cutting jobs.

• Employer contributions to the scheme cut to 5% from an initial 20%
• Minimum hours requirement reduced to 20% from 33%
• The Job Support Scheme was first announced last month and is due to begin in November, replacing a broader furlough scheme

SELF-EMPLOYED GRANT

Sunak announced a more generous scheme of grants designed to support the self-employed.

• The amount of profits covered by two forthcoming self-employed grants rises to 40% from 20%
• This means the maximum grant will increase to 3,750 pounds from 1,875 pounds
• This will cost up to £3.1 billion for the first grant, which covers November to January
• A further grant will follow, covering February to April

BUSINESS GRANTS

Sunak announced an expanded system of business grants.

• Businesses in the country’s second-highest alert level will now be able to apply for monthly grants of up to £2,100. Previously grants were only available to those in the areas where the highest alert level was in force
• These grants are primarily for businesses in the hospitality, accommodation and leisure sector who may be adversely impacted by restrictions to stop the spread of COVID-19
• Grants will be available retrospectively for areas who have already been subject to restrictions
• Grants could benefit around 150,000 businesses in England