The government have released revised plans for the new Job Support scheme that starts from 1st November 2020. This is the scheme that will replace the furlough scheme that ends at the end of the month. The new rules have changed as of yesterday, to increase help to employers.
Revised Job Support Scheme – as of 22nd Oct 2020 Announcement
The Job Support Scheme (JSS) will open on 1 November and run for six months, until 30 April 2021. The government has said it will review the terms of the scheme in January 2021. There are two variations to JSS – JSS Open and JSS Closed.
The UK government announced yesterday it will significantly increase the generosity and reach of its winter support schemes to ensure livelihoods and jobs across the UK continue to be protected.
JSS Open
- Will provide support to businesses that are open where employees are working shorter hours due to reduced demand
- Employees will need to work at least 20% of their usual hours. Employers will continue to pay employees for the hours they work.
- The UK government will pay a contribution of 61.67% of the usual pay for hours not worked, up to a maximum of £1,541.75 per month.
- Employers will pay 5% of the usual pay for hours not worked, up to a maximum of £125 per month, and can top this up further if they choose.
- Employers will also cover all employer National Insurance and pension contributions.
- This means employees should receive at least two thirds of their usual pay for hours not worked.
The caps reduce according to the proportion of hours not worked. Further guidance on this will be available on GOV.UK shortly.
JSS Closed
- Will provide support to businesses whose premises are legally required to close as a direct result of coronavirus restrictions set by one of the four governments of the UK. This includes premises restricted to delivery or collection-only services from their premises, and those restricted to providing food and/or drinks outdoors.
- UK government will fund two thirds of employees’ usual wages for time not worked, up to a maximum of £2,083.33 per month.
- Employers will not be required to contribute, but you can top up the government’s contribution if you choose to. You will still need to cover all employer National Insurance and pension contributions.
- This means employees should receive at least two thirds of their usual pay for hours not worked.
What Other Differences are there from Furlough?
- If you fall under JSS Open and your workers do not work any hours, you cannot make a claim.
- Employers will only be able to claim in arrears from 8th December – they will need to pay their workers before they receive any money.
- For the first time, employees will be able to check if their employer has made a Job Support Scheme claim on their behalf through their online Personal Tax Account. Employees can set up a Personal Tax Account on GOV.UK, by searching ‘Personal Tax Account: sign in or set up’.
If anyone needs any advice on the new measures, please contact us