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What you need to know about Tier-3 support for businesses

With the UK facing more and more lockdown restrictions, it is a tricky time for businesses. The new tier system has made things all the more confusing, with different areas facing different rules and restrictions. If you find your local area being plunged into Tier-3, it can leave you wondering just where you stand. Tier-3 is where all pubs and bars are forced to close and some areas are seeing the closure of restaurants and gyms.

In the main lockdown back at the beginning of the year, the Government introduced different measures to help keep businesses and companies afloat. Many are wondering if this will happen again. Unlike at the height of the pandemic, when all pubs and restaurants were forced to close nationally, and it was up to the government what happened, regional lockdowns are being controlled by authorities who are being made to handle lockdown support. This is why there is variation between areas in what is open and what isn’t. Liverpool City Region and Lancashire, for example, have different support packages.

What has been offered?

So far, two main schemes have been announced from the government, and this is the expanded Job Support Scheme , and the Local Restrictions Support Grant. For businesses that are physically stopped from legally operating due to Covid-19 restrictions put in place, the government has said that they will pay 66% of their wages. The employer will still need to contribute to their National insurance and Pension scheme. The Local Restrictions Support Grant is set up to provide businesses with a grant of up to £3,000 per month, depending on their company size and property value.

If businesses have not been forced to close due to Tier-3 restrictions but have found themselves severely impacted, then another grant may be available at the discretion of your local council. This is a one-off payment of £1,500 and it is up to the local council to decide your eligibility.

The Job Support Scheme won’t be available until November with first payments in December, but you can find details on your local authority’s website. Different authorities have negotiated Tier-3 restrictions and support so it is important you check out the government website and your local authority for more tailored advice on the latest support measures.