Chancellor announces changes to Job Support Scheme
Thursday 22nd October 2020
Earlier today, the Chancellor announced changes to the Job Support Scheme, which is replacing the furlough scheme from 1 November.
The Job Support Scheme provides government funding to help employers pay the wages of staff who are working reduced hours.
When it was originally announced, the government had said that where someone was working fewer hours than they normally did, the state would meet 33% of wages for the hours that were not being worked.
However today, the Chancellor announced that the government will instead now cover 62% of wages for hours that are not worked, capped at £1541.75 per month. Employers will only be required to pay 5% of staff wages for hours not worked.
To be eligible for this scheme an employee must still be working at least 20% of their normal hours, and these worked hours must be paid by the employer as normal.
The Chancellor also said that the third grant for self-employed people under the Self Employment Income Support scheme, available from November, will also be more generous than originally planned.
When it was originally announced it was only going to cover 20% of average profits. The Chancellor has now said it will cover 40% of average profits.
Alongside this the Chancellor also announced new grants for businesses effected by Tier 2 lockdown restrictions. For more information see Chancellor increases financial support for businesses and workers from gov.uk