Nick Ferrari 7am - 10am
What does Rishi Sunak's new support package mean for you?
22 October 2020, 16:51
Chancellor Rishi Sunak has unveiled a new package of business support worth billions for businesses
In a statement to the House of Commons, Mr Sunak announced that the coronavirus Job Support Scheme will be made more generous, with employer contributions reduced and the minimum hours requirement also cut.
The measures are also expected to help many self-employed people who have complained of being forgotten about during the pandemic.
But what does the announcement mean for business owners and workers?
How much will be given to Tier 2 areas?
The Chancellor announced that grants of up to £2,100 per month would be given to businesses affected by Tier 2 restrictions.
Payments will be backdated, meaning areas which entered Tier 2-style restrictions in the summer - including Greater Manchester - will be eligible to apply for up to £6,300.
The amount that employers are required to pay to top up their wages has also been reduced to just 5% of unworked hours, down from 33% - making the Job Support Scheme more generous.
How will self-employed people be supported?
The amount covered by grants will increase from 20% of profits to 40%, meaning the maximum payout will double from £1,875 to £3,750.
This will amount to a potential further £3.1 billion of support to the self-employed through November to January, with a further grant to follow covering February to April.
Tens of thousands of self-employed workers have been struggling throughout the pandemic - often in industries that have been most adversely affected.
Who is eligible?
An estimated 150,000 business will be eligible to apply for the scheme.
So far London, Essex, the North East, Cheshire, West Yorkshire, the West Midlands and Nottinghamshire as well as parts of Derbyshire, North Yorkshire, Surrey, Leicestershire and Cumbria are all under Tier 2 restrictions.
The support will also be provided for Tier 3 areas on top of the business support already available.
How much will it cost the taxpayer?
The package of measures for businesses in Tier 2 is expected to cost over £1 billion alone.
Support for the self-employed from November to January will cost an estimated £3.1 billion.