A New Job Support Scheme to Run from 1 November

A New Job Support Scheme to Run from 1 November

The scheme will protect viable jobs in businesses who are facing lower demand over the winter months due to coronavirus.

The new Job Support Scheme, announced by the Chancellor Rishi Sunak today, will run from 1 November for six months to help keep employees attached to the workforce. The scheme forms part of the recently announced government’s Winter Economy Plan, aimed to protect jobs and support businesses over the coming months.

Under the scheme, the government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand.

Employers will continue to pay the wages of staff for the hours they work – but for the hours not worked, the government and the employer will each pay one third of their equivalent salary. This means employees who can only go back to work on shorter time will still be paid two thirds of the hours for those hours they can’t work.

In order to support only viable jobs, employees must be working at least 33% of their usual hours. The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month. This will ensure employees earn a minimum of 77% of their normal wages, where the government’s contribution has not been capped.

The Job Support Scheme will be open to businesses across the UK even if they have not previously used the furlough scheme, with further guidance being published in due course. More information on what is covered by the grant, which employers and employees are eligible, and how to claim can be found here.

It is designed to sit alongside the Jobs Retention Bonus and could be worth over 60% of average wages of workers who have been furloughed – and are kept on until the start of February 2021. Businesses can benefit from both schemes in order to help protect jobs.

Image: PixieMe / Adobe Stock

Share this article:

Related Articles

Kevin Phillips shares information about venture capital, entrepreneurs' bootcamps and government grants to businesses.