Rishi Sunak has announced big changes to the Job Support Scheme (JSS) – set to replace furlough in November.

 

The Chancellor has announced an expansion of the Job Support Scheme ahead of its launch on 1 November 2020. Employees will now be required to work at least 20% of their contracted hours, rather than 33%, with employers required to contribute just 5% of wages for unworked hours, rather than 33%. Employers using the scheme will also be able to claim the Job Retention Bonus for each eligible employee retained until at least 31 January 2021.

The scheme will, as before, be open to all small businesses and larger businesses that can show an impact on revenues.

For more information click here.

From 1 November, grants available under the Self‐Employed Income Support Scheme will also be doubled from 20% to 40% of profits, increasing the maximum grant available from £1,875 to £3,750.

You can access updates via the FIS COVID-19 hub here.

 

Restrictions are being increased across the four nations to tackle the second wave of coronavirus, and First Minister Mark Drakeford has announced a national lockdown in Wales from Friday 23 October until Monday 9 November.

• Construction and manufacturing can continue, provided employers take all reasonable measures to mitigate the spread of coronavirus. This includes builders’ merchants, which can remain open.
• In a last minute change to the guidance, work in people’s homes can continue, as long as both the worker and household members have no symptoms of coronavirus. If a member of the household is self‐isolating, works are not recommended except to repair faults posing a direct safety risk.
• All accommodation providers are required to close, unless they are providing ‘specific services’ at the request of the Welsh Government or a local authority. This includes providing emergency accommodation for key workers, which include those responsible for the construction or maintenance of public service buildings.

A concern for the sector is that in Wales Centres that have been hosting the H&S Tests will be closing.

In Northern Ireland, a tighter lockdown has been implemented for four weeks, increasing restrictions on travel and gatherings.  Again construction sites are allowed to continue to operate in compliance with social-distancing measures. Border counties in the south such as Donegal, Monaghan and Cavan have seen their level of restrictions increase, meaning only essential workers should go to work; construction has been deemed as ‘essential’ and will be allowed to continue.

In Scotland it was announced today (23rd October) that a 5 tier system is to be introduced. ‘Level 0’ is effectively the same level of protection as the Route Map Phase 3 measures Scotland reached in August and will act as a baseline, with four levels above that designed to apply increasing protection from the virus in areas according to prevalence, the risk to communities and the need to protect the NHS.  Levels 1, 2 and 3 will be broadly equivalent to the UK Government levels to offer some uniformity with measures south of the border. Levels will be reviewed on a regular basis.

Ongoing financial support is set out in the framework and will be available to businesses which are required to close or which can remain open but will be directly affected by restrictions. The Scottish Government will work with local authorities to ensure grants are made available quickly and efficiently.

In the coming days the Scottish Government will engage with local government, stakeholders, economic groups and other partners, prior to a final version of the strategic framework being debated in parliament next Tuesday (27 October).

With some detail to be confirmed in Scotland, at the time of writing, Construction work can continue across the UK (subject to complying with the necessary social distancing and COVID safety measures) – in the event of workers being stopped on journeys to and from sites, Build UK has produced an authorisation letter template for employers which may be helpful.

• Where Travel Restrictions are in place you can Download a letter of authorisation here to support safe passage
• Full guidance from the Welsh Government lockdown is available here
• Full guidance from the Northern Irish Government on lockdown requirements is available here
• Further update on the Scottish 5 tier system is available here.
• A reminder of the three tier system in England is available here.

You can access the FIS COVID Hub for all the latest news here

 

The Site Operating Procedures have been updated to reflect recent changes in Government guidance. Whilst there are no significant changes to social distancing requirements on sites, the Construction Leadership Council (CLC) has taken the opportunity to streamline the Site Operating Procedures whilst maintaining the familiar format.

Changes to the Site Operating Procedures ‐ Version 6 include:

• Current requirements such as social distancing are referenced on page 1 making it easier to update in future
• The CLC statement on The Use of Face Coverings is included
• Updated guidance on shielding, self‐isolation, testing and what to do if a worker develops COVID‐19 symptoms or has to self‐isolate, including a link to Build UK’s flowchart
• Confirmation that canteens serving food must display an NHS QR Code
• The wording has been reviewed throughout to reflect the fact that social distancing is no longer exceptional, and that in some key areas Government has published more detailed guidance or updated terminology.

Cases of coronavirus are increasing across all four nations, and sites are urged to remind the workforce of the importance of social distancing outside of work, in order to protect themselves and others and help keep construction sites open.

You can access the updated Site Operating Procedures here

The Construction Leadership Council has published guidance on the movement of people and workers into the UK in respect of the expiration of the transition period with the European Union at the end of the year.

 The guidance offers an overview of the new points-based immigration system, the Common Travel Area (CTA), the skilled worker route, the shortage occupation list, how to become a licensed sponsor, the rights of EU, EEA and Swiss migrants, the mutual recognition of professional qualifications and the Construction Industry Scheme (CIS) as well as useful links and resources. It is appropriate for all businesses across the industry and along the supply chain.

 The guidance has been issued by the Movement of People Workstream of the CLC BREXIT Working Group and comprises the second publication in a suite of business readiness advice that the group intends to publish ahead of 31 December 2020.

 FIS Chief Executive Iain McIlwee commented: “We have been supporting this vital group within the CLC and playing in our concerns that the cliff edge we face in January could leave us with a real labour shortage in the sector. We will continue to press this point, but we need to start preparing and time is already short.  This guidance from the CLC is, without doubt going to help smaller businesses to pick through what could be a really difficult and bureaucratic process and start communicating with overseas workers in their labour pool in ensuring they secure the right entitlement to work.”.

 How the Points Based System Works

 The table below explains how points will be allocated for anyone on the Skilled Visa route will work, including mandatory and tradeable points.

Characteristics	Mandatory/Tradeable	Points
Mandatory Requirement
Offer of job by approved sponsor	Mandatory	20
Job at appropriate skill level (RFQ3+)	Mandatory	20
Speaks English at required level	Mandatory	10
Points for Salary
Salary of £20,480 to £23,039 or at least 80% of the going rate for the profession (whichever is higher)	Tradeable	0
Salary of £23,040 to £25,599 or at least 90% of the going rate for the profession (whichever is higher)	Tradeable	10
Salary of £25,600 or above or at least the going rate for the profession (whichever is higher)	Tradeable	20
Additional points
Job in a shortage occupation as designated by the Migration Advisory Committee	Tradeable	20
Education qualification: PhD in a subject relevant to the job	Tradeable	10
Education qualification: PhD in a STEM subject relevant to the job	Tradeable	20

 As it stands, no construction occupations are listed on the shortage occupation list, and many trades within the Finishes and Interiors Sector are not deemed to be at an RFQ3+ level making it very difficult to attract new labour from overseas.

 How to prepare as a business

 Hiring New People

 If you are planning to recruit from overseas from 1 January, you will need to obtain a sponsor licence, which can take up to eight weeks.  If you have workers from the EU or EEA who wish to continue living and working in the UK after 30 June 2021, you should advise them to apply for settled and pre‐settled status.

Managing your Existing Workforce

 FIS recommends contacting overseas workers to understand their intentions and pre-empt any problems.  This will also support you in communicating the importance of applying for settled or pre-settled status.  A set of potential questions is provided below to support this activity: 

Covid-19 Holiday Impact Questionnaire Are you a national from an EU member state? Are you a national from an non EU member state? Have you applied for settled status? Have you been granted settled status? Have you applied for pre-settled status? Have you been granted pre-settled status? For how long do you anticipate working in the UK? Are you returning home for the festive break? Which country are you returning to? Does this country have a quarantine policy in place when returning from the UK? Does the UK have a quarantine policy in place when returning from your destination? From the following list below, which weeks do you intend spending away from work, week number only please? Week 1   14-20 December | Week 2   21-27 December | Week 3   28 December – 3rd of January | Week 4   4 – 10 January | Week 5   11 – 17 January | Week 6   18– 24 January

Access the CLC Guidance on movement of labour is here.

FIS remains concerned about the points based system and impact on labour availability.  Government continues to take a very hard line on this with the Home Secretary ignoring advice from the MAC and rejecting any construction trades from being added to the shortage occupation list.  We would welcome your support in commpleting this survey.  

 If you are experiencing or expecting labour shortages, please email your concerns to iainmcilwee@thefis.org 

 

The CPA main scenario for construction output in 2020 is a 14.5% fall as the construction industry shows promising signs of recovery from the coronavirus pandemic. Demand for new private housing and private housing repair, maintenance and improvement (rm&i), as well as strong growth in the infrastructure sector, are expected to support recovery for the industry towards the end of this year and into the next following historic falls in output during lockdown. The prospects, however, of both a deterioration in labour market conditions along with a potential ‘No Deal’ Brexit deal at the end of December mean that the upcoming winter will be decisive for how far such a recovery can be sustained.

The Construction Products Association’s (CPA) Autumn Scenarios, published today, continue to expect a tick-shaped economic recovery as the most likely outcome, with output for construction rising by 13.5% in 2021 from the sharpest fall on record in 2020. The easing of lockdown measures over the summer was accompanied by a rush to meet pent-up demand, particularly in private housing and refurbishment work that couldn’t take place as sites were closed. With social distancing integrated on construction sites, productivity was also able to pick up.

The CPA points out that the housing market is being given a boost from pent-up demand coming through and transactions being brought forward by both the stamp duty holiday and the end of the first phase of Help to Buy in March 2021. Equally, private housing rm&i has benefitted from home working brought on by the pandemic. With more disposable income as a result of spending less on travel and hospitality, many households are choosing to spend it on ‘safe’ options such as home improvements. Some caution remains from 2021 Q2, however, with the end of the stamp duty holiday and uncertainty in the employment market possibly reducing demand.

Along with private housing, the CPA expects the infrastructure sector to be critical for growth. With output not falling as sharply this year as in other sectors due to larger sites making social distancing easier, next year’s growth will capture the start of main works on HS2, plus ongoing work on major projects such as offshore wind, Thames Tideway and Hinkley Point C. Only airports within the infrastructure sector are expected to see a decline in activity over the next few years, given sharp declines in airline passenger numbers as a result of the pandemic.

Commenting on the Autumn Scenarios, the CPA’s Economics Director, Noble Francis, said: “The easing of the social distancing restrictions in summer led to a sharp recovery in certain sectors of the construction industry – most notably, in the form of increased demand for private housing and private housing rm&i where growth is currently strong. The government’s commitment to infrastructure delivery, as outlined in the National Infrastructure and Construction Procurement Pipeline for 2020/21, is also a promising sign of growth.

“But, uncertainty continues to loom for the commercial sector. If working from home becomes more engrained in society, footfall in city and town centres will decline leading to a lack of demand for office and retail space. Equally, a critical winter lies ahead for the wider economy. The key risks to the construction industry remain a potential second national lockdown and a ‘No Deal’ Brexit, which are illustrated in the CPA’s other scenario. Either would lead to a second dip in the UK economy and construction output.

“A free trade deal agreed in principle with the EU, with the details determined over time, would at least give some degree of confidence for what is still a fragile economic recovery. In addition, construction recovery so far has been highly reliant on government either directly through spending in infrastructure or indirectly through policy stimulus to boost housing. Government has an extra responsibility, therefore, to deliver on its announcements and ensure construction recovery does not stall in the next 12 months. We certainly aren’t out of the woods yet.”