*31 October 2020 update: The Job Support Scheme has been postponed while we go back into lockdown, and furlough continues. Check out our latest blog with all the details.
It’s been less than a month since Rishi announced the Job Support Scheme for businesses forced to close, but today we have new changes to the Job Support Scheme, which is replacing the Furlough Scheme from 1 November 2020 onwards.
What are the new rules?
- Employees must work a minimum of 20% of their normal hours
- The 80% of hours not worked will be funded:
- 5% by the employer
- 62% by the Government (taxpayer)
- 33% will be unpaid
- The scheme starts 1 November 2020, and replaces the Furlough Scheme (Coronavirus Job Retention Scheme: CJRS)
- The scheme runs to 30 April 2021
- It will be reviewed in January 2021
Check out the Government’s infographic, which explains the split of who pays what:
What else do we need to know?
- Employees don’t need to have been furloughed
- Employers must have a UK bank account and up to date PAYE scheme
- Employers should agree shorter hours in writing with affected employees
- Employers’ NIC and Pension contributions are not covered, so will be paid by the employer
- You can’t make employees redundant while they’re on the Job Support Scheme
What about other Job Support Grants?
The employer may be eligible for the Job Retention Bonus
The Job Retention Bonus is £1,000 payable in February 2021, if the employee was furloughed, and still employed at 31 January 2021
Get in touch if we can help you to make sense of this.
Please keep an eye on our COVID Support page, as we will update you as soon as we hear more.