5 days ago
Further expansion of Job Support Scheme
This update is written and posted on Thursday 22nd October 2020 and will quickly become out of date once further details are known. We will endeavour to update it as soon as information becomes available.
Following criticism that the Job Support Scheme did not provide support for those businesses in tier 2 of the three-tier system for local restrictions, the Chancellor has today reduced what employers will be required to pay under the scheme.
The Job Support Scheme is open to SMEs, and also large businesses who have suffered a drop in turnover. As the scheme is separate to the furlough scheme, employers can claim in respect of employees who were on their PAYE payroll on or before 23 September 2020.
For businesses in tier 1 (medium risk) or tier 2 (high risk) the scheme rules are:
- Employees must work at least a fifth (20%) of their normal hours. They can work more than this.
- Employers must pay staff for the hours they work.
- The employer must pay 5% of the hours not worked and the government will pay 61.67% of those hours not worked (not 61.67% of the normal wage).
- Subject to a cap on the Government’s contribution of £1541.75 per month per employee
This does not change the support for businesses in tier 3 (very high risk) which is:
- There is no requirement for the employee to work any hours.
- Should the employee work any hours, the employer must pay for those hours
- For the hours not worked, the government will pay up to two thirds (67%). Employer must pay the National Insurance and pension contributions.
- Subject to a cap of £2,100 per month per employee.
Unlike the furlough scheme, whereby an employee could be furloughed during their notice period, an employer cannot claim under the Job Support Scheme during any period an employee is on notice due to redundancy.
The scheme opens on 1 November 2020 and runs until the end of April 2021. The Government have said they will review the scheme after three months.
If you have any specific questions, please e-mail email@example.com and we will try to cover the point when the answer is available.