In September 2020, the government announced a new Job Support Scheme. It replaces the furlough scheme, which ends on 31 October.
The Job Support Scheme starts on 1 November and will last six months. It’s designed to protect ‘viable’ jobs in businesses facing lower demand this winter because of Covid-19.
Businesses will pay employees for time worked, with the cost of hours not worked split between the employer, the government (through wage support) and the employee (through wage reduction). The government’s contribution is capped at £697.92 a month.
Employees must work at least a third of their normal hours.
The government says this will ensure employees earn a minimum of 77 per cent of their normal wages.
How do I get this support?
You don’t need to have used the furlough scheme to take part. You need to have a UK bank account and UK PAYE schemes.
Employees need to have been on the payroll on, or before, 23 September 2020.
The scheme will be open from 1 November 2020 to the end of April 2021.
You can make a claim online through gov.uk from December 2020 and you’ll be paid on a monthly basis.
Grants are paid in arrears. This means that a claim can only be submitted in respect of a given pay period, after payment to the employee has been made and that payment has been reported to HMRC via an RTI return.