In our recent article “Pub or Restaurant – is your meal substantial enough?” here we outlined the new Government Job Support Scheme (JSS) which is to be introduced from 1 November 2020. We highlighted the different levels of support available to pubs in tiers 2 and 3. In some cases pubs were more likely to survive if they were “forced” to shut, meaning they could claim under the JSS, compared to those left open and struggling with minimal customers.
Changes to the JSS announced
The JSS has been much criticised by the sector but today the Chancellor increased the package of support available.
Pubs that are forced to close
Pubs in tier 3 that are legally required to close will still be able to claim two-thirds of the normal pay of each eligible employee up to a maximum of £2,100 per month from the Government under the JSS. The employer will not be required to contribute to this but will still need to pay employer’s NI contributions.
Pubs and restaurants that can open
Pubs and restaurants in tier 2 and those remaining open in tier 3 will now be entitled to the following support:
- You pay the employee for the hours they work (the employee must work a minimum of 20% of their usual hours of work to be eligible for the JSS).
- Where an employee agrees to a reduction in hours, you will pay 5% (previously 33%) and the Government will pay 61.67% of the employee’s unworked hours.
- The Government’s cap on monthly contributions has increased to £1,541.75.
Tier 2 Grants
The Chancellor has also announced that pubs will be able to access a grant of up to £2,100 per month for each month that tier 2 restrictions have applied. These grants will be delivered by Local Authorities and can be backdated to August.
The Chancellor says that these measures equate to 70% of the help available to closed businesses in tier 3.
Our team can help you navigate the impact of the new three tier system and the JSS on your business and assist you with eligibility and claims under the furlough and the JSS. For further information Christopher Sing.
The content of this page is a summary of the law in force at the present time and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.