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Chancellor expected to announce Tier 2 job support package

22 October 2020 by
Chancellor expected to announce Tier 2 job support package

The chancellor is expected to unveil a new support package for workers in areas of England under Tier 2 (high) coronavirus restrictions, according to the BBC.

UKHospitality chief executive Kate Nicholls is among business leaders meeting with Rishi Sunak this morning, before he addresses the Commons later.

Sunak is reportedly set to update the Job Support Scheme (JSS), which will replace furlough from 31 October.

In Tier 3 (very high) areas the government covers two-thirds of staff pay, up to £2,100 a month, if their workplace is affected.

But in Tier 2 the support scheme requires employees to work at least a third of their normal hours part-time, with a larger employer contribution.

Many businesses say this will result in more job losses, as a drop in trade means they are unable to top-up staff wages on top of paying rent and bills.

Restaurants and pubs serving food in Tier 2 and 3 areas have been left in limbo, as they are not mandated to close but are struggling with a lack of footfall.

Areas including London, Essex, Elmbridge, North East Derbyshire and York moved in to Tier 2 last week following a rise in infections.

But other parts of the country have been subject to tighter restrictions for much longer.

Sacha Lord, night-time economy adviser for Greater Manchester, tweeted: "Greater Manchester has in effect been in Tier 2 for over 10 weeks. London has been in Tier 2 for a week.

"I'm now reading that the Chancellor is meeting business Leaders to see what extra help can be done for Tier 2. Let's hope ours is back dated. North/South divide."

UKHospitality has warned that the move to Tier 2 risks up to 250,000 jobs in the capital alone.

Image sourced from Shutterstock

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