Workers to get more than two thirds of pay if firms ordered to close

Chancellor Rishi Sunak

Staff who work for UK firms forced to shut by law because of COVID-19 restrictions are to get more than two-thirds of their wages paid for by the Government.

The scheme begins on 1 November and runs for six months. Chancellor Rishi Sunak has this afternoon said it would be a safety net for staff and businesses.

A restrictions update, which could see pubs and restaurants shut in the worst hit areas of the country, is expected on Monday.

The support will be reviewed in January. But until November, businesses that are asked to close can continue to use the furlough scheme.

The grants will be paid up to a maximum of £2,100 per employee a month and the Treasury said they will protect jobs and enable businesses to reopen quickly once restrictions are lifted.

In addition, for businesses forced to close in England, the Chancellor announced an increase in business grants – with up to £3,000 a month paid every fortnight.

He described today’s announcement as “a very different scheme to what we’ve had before, this is not a universal approach, this is an expansion of the job support scheme specifically for those people who are in businesses that will be formally or legally asked to close”.

The assistance will only apply to companies that have to close as a result of Government regulations, but as yet it is not clear which firms may have to close.

Reported by the BBC today, Sunak said: “The rise in cases and hospital admissions in certain parts of the country is a concern.

“It’s right the Government considers a range of options, but it’s also right they engage with local leaders.

“That is what’s happening this afternoon and over the weekend so those conversations can happen and collectively we can decide on the appropriate response.”

Paul Cherpeau

Reacting to the Chancellor’s statement, Paul Cherpeau, chief executive of Liverpool Chamber of Commerce, said: “The measures from the Chancellor offer some support to businesses that once again through no fault of their own have to close their doors.

“We welcome the support of wages, however the £3,000 figure will not even cover the rents of some businesses let alone revenue loss.

“Again we fear for the future of our leisure and hospitality which is the fuel of the region.”

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