Job Support Scheme

The furlough scheme which is the existing job support scheme will come to an end on 31st October. The government has announced it will be introducing a new Job Support Scheme from 1st November 2020. This scheme comes as part of the Winter Economy Plan.

To participate, employees will need to work a minimum of 33% of their normal working hours. For every hour not worked, the employer and the government will each pay one third of the employee’s usual pay. The government contribution will be capped at £697.92 per month.

Employees using the scheme will receive at least 77% of their pay, where the government contribution has not been capped. The employer will be reimbursed in arrears for the government contribution. The employee must not be on a redundancy notice.

The scheme will run for six months from 1st November 2020 and is open to all employers with a UK bank account and a UK PAYE scheme. It will be open to such businesses even if they have not previously used the furlough scheme.

All small and medium-sized enterprises will be eligible for the Job Support Scheme. For large businesses to be eligible, they are required to demonstrate that their business has been adversely affected by COVID-19. The government also expects that large employers will not be making capital distributions, such as dividends, while using the support scheme.

The Job Support Scheme will sit alongside the Jobs Retention Bonus which was announced by the Chancellor in July. The Bonus will provide a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021 and who earns at least £520 a month on average between 1st November 2020 and 31st January 2021. Businesses can benefit from both schemes.

Amy Telford ACA of Harvey, Telford & Bates comments on the Job Support Scheme:

“The new Job Support Scheme coming into effect on 1st November 2020 is the next step in the support for businesses as a result of COVID-19. Providing businesses stick to the requirements laid out, they will be able to utilise this scheme alongside the Jobs Retention Bonus. If you as an employer require assistance in navigating through the Job Support Scheme, please get in contact with us at Harvey, Telford & Bates.”

If you would like assistance, please call us on 01743 462604 or email us at hello@htbaccountants.co.uk to schedule an appointment or speak to one of our team.

For more information on the Job Support Scheme, please click here

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