With the furlough scheme coming to an end on 31 October 2020, the Chancellor Rishi Sunak presented, its replacement: The New Job Support Scheme.
Today, the government has acknowledged the need to increase it’s support to help businesses and employees, across the UK, to survive local lockdowns. The news has been welcomed, with repect to the difficult winter months ahead, by adding extra support measures to The New Job Support Scheme, announced last month.
The government is providing extra support by:
– Increasing their contribution to wage costs.
– Reducing employer contributions from 33% to 5%.
– Reducing the number of eligible employee working hours to 20%.
– Expanding business grants to those in high alert level areas.
– Doubling grants for the self employed, to 40%.
Here is a 3 minute summary of the Chancellor, Rishi Sunak’s Updated New Job Support Scheme:
The Job Support Scheme (JSS)
Coming into effect on 1 November 2020 until April 2021.
Employers will only contribution 5% of the employee unworked hours.
To be eligible for the scheme, employees only need to work 20% of their contracted normal hours. So someone can now works for 1 day a week and still be eligible for the scheme. (If working a 5 day week)
So how does the new scheme compare?
The Furlough Scheme
The government contributes 60%.
The employer contributes 20%
The employee loses 20% of their wages.
The Old Job Support Scheme (Announced in September 2020)
The employee gets paid for 33% from the employer.
The government contributes 22%.
The employer contributes 22%.
The employee loses 22% of their wages..
The New Job Support Scheme (For Tier 3 lockdown)
The government contributes 67%
The employer contributes 0%.
The employee loses 33%.
The New Job Support Scheme (For all other businesses facing restrictions)
The employee gets paid for 20% from the employer.
The Government contributes 49%.
The employer contributes 4%.
The employee loses 27% of their wages.
The New Job Support Scheme (For all other businesses facing restrictions)The employee gets paid for 20% from the employer.The Government contributes 49%.The employer contributes 4%.The employee loses 27% of their wages.Tweet
Who is eligible?
All employers with a UK bank account and UK PAYE schemes can claim the grant.
Neither the employer nor the employee needs to have previously used the
Coronavirus Job Retention Scheme.
Employees must be on an employer’s PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment to that employee to HMRC must have been made on or before 23 September 2020
In order to support viable jobs, for the first three months of the scheme the
employee must work at least 20% of their usual hours. After 3 months, the
Government will consider whether to increase this minimum hours threshold.
What is covered?
For every hour not worked by the employee, both the Government and employer
will pay a third each of the usual hourly wage for that employee. The Government
contribution will be capped at £1,541.75 a month.
Grant payments will be made in arrears, reimbursing the employer for the
Government’s contribution. The grant will not cover Class 1 employer NICs or
pension contributions, although these contributions will remain payable by the
Employers must pay employees their contracted wages for hours worked, and the
Government and employer contributions for hours not worked.
Employees must be on an employer’s PAYE payroll on or before 23 September 2020, in order to claim.Tweet
What does reduced hours actually mean?
The employee must be working at least 20% of their usual hours..
For the time worked, employees must be paid their normal contracted wage.
For time not worked, the employee will be paid up to two-thirds of their usual
Employees cannot be made redundant or put on notice of redundancy during the
period within which their employer is claiming the grant for that employee.
How to claim?
The scheme will be open from 1 November 2020 to the end of April 2021.
Employers will be able to make a claim online through Gov.uk from 8 December 2020. They will be paid on a monthly basis
If you require any additional information regarding The New Job Support Scheme, please contact us at email@example.com or call us on 0208 064 0969.