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New Jobs Support Scheme Introduced


Posted on: Sep 28,2020


The Government says that it will not be possible to preserve every job or business indefinitely, nor stand in the way of the economy adapting and people finding new jobs, or starting new businesses. But the steps the government is taking will help protect jobs, support businesses through uncertain times, and prepare them for recovery [ see Winter Economy Plan].

Jobs Support Scheme (JSS)

The Government is introducing a new Job Support Scheme from 1 November 2020. It is intended to support viable UK employers who face lower demand due to COVID-19, and to keep their employees attached to the workforce.  It is open to all employers with a UK bank account and a UK PAYE scheme. The grant given by the Government will be capped at just under £700 per month for every employee. This makes the support much less generous than the furlough scheme, which is currently capped at just under £2,200 per month and has cost the taxpayer £39 billion so far. The JSS programme is expected to cost £300 million per month for every million workers who use it, and firms will not be allowed to make staff redundant while they are on the scheme.

Three Principles

1 The scheme will only support “viable jobs”. You must work a minimum of 33% of your usual hours. For every hour not worked, your employer and the government will each pay one third of your usual pay. So those working a third of their hours will receive at least 77% of their pay, but the Treasury contribution is capped at 22%. Your employer will be reimbursed in arrears for the government contribution.

 

2 Support will be targeted at “firms that need it the most”. All Small and Medium-Sized Enterprises (SMEs) will be eligible but larger businesses will only be eligible if their turnover has fallen during the crisis.  The government expects that large employers will not be making capital distributions (such as dividends), while using the scheme.

 

3 The scheme is open to all employers, even if they did not use the furlough scheme previously.

[see Job Support Scheme Factsheet]

 

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