Edit – Job Support Scheme Now Postponed
The Coronavirus Job Retention Scheme (CJRS), which was due to end on 31 October, will now be extended, with the UK government paying 80% of wages for the hours furloughed employees do not work, up to a cap of £2,500 for periods from 1 November.
The new Job Support Scheme, which was due to start on Sunday 1 November, has been postponed.
Job Support Scheme- now postponed
The furlough scheme, which has helped businesses to cover wages for employees on temporary leave, is due to end on the 31st of October.
It’s replacement: The Job Support Scheme starts on the 1st of November and employers will be able to claim online on a monthly basis through gov.uk from December 2020. The scheme is set to be available for a period of 6 months, however, this will be reviewed by the government in January.
All claims are subject to checks by HMRC and employers must agree the new scheme with their employees and notify them in writing. This agreement must also be made available to HMRC on request.
This support scheme is intended to protect jobs where businesses remain open but are facing lower demand, it has also been expanded to offer temporary support for businesses that have been legally required to close as a result of coronavirus restrictions.
What is the Job Support Scheme? – now postponed
For employees that are working fewer hours than normal due to decreased demand, the government will contribute towards their wages.
In order to qualify, employees must work at least 20% of their usual hours, for which employers will continue to pay wages as normal.
For the hours not worked, the employer and the government will pay a proportion of their usual wages each.
As an example, if someone that usually earns £2,000 per month is asked to work half of their hours, they would get £1,000 of their normal pay. They would also receive £666 extra from their employer and the government combined.
The remaining £333 would go unpaid.
This means that the employee would be paid 77% of their regular wage where the government’s contribution does not exceed the cap of £2100.00 per month.
Expansion of the Job Support Scheme – now postponed
For each employee that can’t go to work because the business they work for has been legally required to close, the government will grant 67% of wages (up to a maximum of £2,100 a month) to the affected business.
Employers will not be required to contribute towards wages, but they will need to cover employer National Insurance and pension contributions.
How you can apply for the Job Support Scheme – now postponed
As of 1st of November, the Job Support Scheme and the new expansion will be available for a period of six months (this is to be reviewed in Jan 2021). Employers can make monthly online claims via gov.uk from December 2020.
Affected businesses can apply even if they haven’t previously used the Coronavirus Job Retention Scheme or furloughed employees.
To make sure that you get the support for your business that you need, keep an eye on our specialist Covid-19 Business Support page for important updates, or give us a call on 01704 211 434.