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New Financial Support announced for Tier 2 Businesses

post-image 22nd October 2020

The Chancellor of the Exchequer, Rishi Sunak, has unveiled additional support for businesses in Tier 2 locations, including increasing support through the existing business grants, alongside new amendments to the Job Support Scheme, which was announced last month.

Businesses in Tier 2 areas who are severely impacted by restrictions but not legally forced to close will be able to apply for direct cash grants worth up to £2,100 per month.

The grants, which will be primarily for firms in the hospitality, leisure and accommodation sectors who may be adversely impacted by the restrictions in high-alert level areas, will also be retrospective. Any business which has been under enhanced restrictions since August can backdate their grants. These are separate to the grants of up to £3,000 available for businesses who have been legally required to close.

As part of the increased measures for the Job Support scheme, the minimum hour requirement has been brought down to 20%, and the employer required top-up has been reduced from 33% down to 5%.

That means that if someone was being paid £587 for their unworked hours, the government would be contributing £543 and their employer only £44.

Employers will continue to receive the £1,000 Job Retention Bonus. The Job Support Scheme Closed for businesses legally required to close remains unchanged.

For further information, please see here.