Sunak unveils new emergency jobs support scheme

Aaron Morby 1 month ago
Share

Chancellor Rishi Sunak has unveiled a “Winter Economy Plan” to protect jobs and companies as Covid-19 restrictions continue.

Sunak calls for more time on spending decisions as lockdown 2.0 looms
Sunak calls for more time on spending decisions as lockdown 2.0 looms

The move comes after the cancellation of the Autumn Budget and will see the replacement of the existing furlough scheme with a Jobs Support Scheme from November 1.

The new scheme will run for six months and see the government contribute towards the wages of employees who are working fewer than normal hours due to decreased demand.

Employers will continue to pay the wages of staff for the hours they work – but for the hours not worked, the government and the employer will each pay one third of their equivalent salary.

This means employees who can only go back to work on shorter time will still be paid two thirds of the hours for those hours they can’t work.

In order to support only viable jobs, employees must be working at least 33% of their usual hours.

The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month.

The Job Support Scheme will be open to businesses across the UK even if they have not previously used the furlough scheme.

It is designed to sit alongside the Jobs Retention Bonus and could be worth over 60% of average wages of workers who have been furloughed – and are kept on until the start of February 2021.

Businesses can benefit from both schemes in order to help protect jobs.

The Government is also continuing its support for the self-employed by extending the Self Employment Income Support Scheme Grant (SEISS).

An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to actively trade but face reduced demand due to coronavirus.

The initial lump sum will cover three months’ worth of profits for the period from November to the end of January next year. This is worth 20% of average monthly profits, up to a total of £1,875.

Companies who took out a Bounce Back Loan will be given more time to pay back the money with the time frame extended from six years to ten.

Coronavirus Business Interruption Loan Scheme lenders will also now extend the length of loans from a maximum of six years to ten years.

Sunak said: “The resurgence of the virus, and the measures we need to take in response, pose a threat to our fragile economic recovery.

“Our approach to the next phase of support must be different to that which came before.

“The primary goal of our economic policy remains unchanged – to support people’s jobs – but the way we achieve that must evolve.”

For full details of the plan click here.

Latest news

Green light for £1bn London hotel

Kensington Forum scheme is huge vote of confidence in capital's hospitality sector
19 hours ago

Pothole repair robot unveiled in Liverpool

University team hope AI technology will revolutionise road maintenance
15 hours ago

Lone Star offer to buy McCarthy & Stone for £630m

Private equity investor swoops with recommended cash offer to buy retirement homes specialist
22 hours ago

Legal & General signs construction deal with nine contractors

Southern construction partners chosen by Inspired Villages - more regions now up for grabs
22 hours ago

Priti Patel snubs plea to ease controls on foreign brickies

Some big brickwork contractors warn four in five workers are EU nationals
22 hours ago

Plans in for Poole quay housing and hotel scheme

Fisherman's Dock plan for 228 flats and boutique hotel
23 hours ago

McAleer & Rushe bounces back with £350m haul of orders

Spate of wins restores two-year order book to near pre-Covid levels
22 hours ago

Graham signs off £161m Aberdeen hospital deal

Work to start next month of Baird Family Hospital and ANCHOR cancer centre
22 hours ago

ISG starts new £50m Royal Marsden cancer centre

Oak Cancer Centre due for completion in Summer 2022
2 days ago

Vital Energi lands £6.58m energy centre deal

Specialist to build Combined Heat & Power centre on Galliford Try site
2 days ago
Vital Energi

Causeway Donseed offers non-contact site monitoring

Facial recognition makes access control Covid safe
2 days ago

Osborne wins prelims for £1.7bn Stonehenge route

Record £35m archaeological protection and excavation deal also signed
2 days ago

Industry door and window supplier collapses

North West's Total Glass falls into administration
2 days ago

Hill Group launches £300m London land grab

Land buying drive to boost housing pipeline in the capital
2 days ago

Mace £500m Stevenage town centre revamp approved

Mace says town centre plan is a blueprint for Government build back better ambitions
3 days ago

McAleer & Rushe wins Brixton archive and homes job

Final phase of Muse's Lambeth Town Hall scheme gets underway
2 days ago

Alumasc and Travis Perkins see sales continue to rise

Post lockdown demand continues but commercial construction lagging other sectors
2 days ago

Big name winners confirmed for CITB management training cash

Major contractors get £2.8m towards in-house training for senior staff
3 days ago

B&K starts £70m MediaCity resi scheme

14 and 17 storey blocks will contain 280 flats for sale
3 days ago

Civils outfit Bemus heads for liquidation owing £4.6m

Founder Sean Walsh applies for creditors voluntary liquidation
3 days ago

UWE Bristol to tender 900-bed student digs

Trio of six-storey blocks to be built at Frenchay Campus.
3 days ago

Amey trials pothole repair material made from old tyres

Unique rubber-modified material may be coming to Sheffield’s roads
3 days ago

HS2 reveals low-slung viaduct designs

Northamptonshire Edgcote and Lower Thorpe viaducts designed to be unobtrusive
4 days ago

Van Elle wins HS2 ground improvement deal

Firm will vibro pile 4,000 stone columns in north west London
4 days ago

Skanska wins Bristol Temple Street office job

Work to start next month on One Portwall Square project
4 days ago

Three sisters set-up plant hire business

Finnegan sisters buy first kit after securing funding deal
3 days ago

Network Rail SME spend tops £2.5bn for first time

Small and medium-sized firms account for 36% of total rail spend
4 days ago

Construction fears force immediate evacuation of London estate

Inspections raise serious concerns about Berkeley-built modular housing and student blocks
5 days ago

Bellway recladding costs overshadow hit from Covid

Pre-tax profit slumps 62% after £47m set aside for recladding and extra Covid costs
4 days ago

Workers stunned by construction pay freeze plan

Union slams "missed opportunity" to reward workers who have continued throughout pandemic
5 days ago

Contractor services