Chancellor unveils support for workers in Welsh Winter Economy Plan

Chancellor unveils support for workers in Welsh Winter Economy Plan

The Chancellor of the Exchequer, Rishi Sunak MP, has unveiled the government’s Winter Economy Plan, announcing a ‘series of measures to safeguard viable jobs and protect businesses across Wales’. The new package for Wales include a Job Support Scheme which will help to protect millions of workers returning to work, extending the Self Employment Income Support Scheme (SEISS), a 15% cut in VAT for the hospitality and tourism sectors, and assistance for businesses with repaying government loans.

The Job Support Scheme (JSS) will be operating from 1 November 2020 to ‘protect viable jobs in businesses who are facing lower demand’ due to the coronavirus (COVID-19) pandemic. The JSS will run for six months and help to keep employees working fewer than normal hours in employment by contributing toward their wages.

To be eligible for the JSS, employees must be working a minimum of 33% of their normal hours. The grant will be capped at £697.92 per month and calculated on the employee’s usual salary. The JSS will work alongside the Jobs Retention Bonus, offering over 60% of average wages of workers who have been furloughed and kept in continuous employment until February 2021.

The temporary 15% VAT cuts for tourism and hospitality sectors have been extended until March 2021, as well as half a million businesses receiving VAT bill deferrals through the New Payment Scheme (NPS). The NPS offers businesses the chance to make repayments in smaller instalments as opposed to a lump sum at the end of March 2021.

Further, businesses who took out a Bounce Back Loan through the Pay as You Grow repayment system will have the burden lifted through extensions to loan lengths and reductions of monthly repayments by up to half.

Lenders of the Coronavirus Business Interruption Loan Scheme will also have the option to extend the length of loans from a maximum of six to ten years ‘if it will help businesses to repay the loan’.

Source: Chancellor Outlines Winter Economy Plan for Wales

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