Chancellor announces changes to the Job Support Scheme

The Chancellor announced onThursday 22 October that the Government contribution to employers’ wage costs under the Job Support Scheme (JSS) will be increased. Employers will be expected to pay 5% of the cost of unworked hours instead of the 33% originally announced.

Summary of the changes

• An employee will only need to work for 20% of their normal hours instead of 33%.

• Instead of a minimum requirement of paying wages for a third of the hours not worked employers will only have to pay for 5% of hours not worked.

• The government will now fund 62% of the wages for hours not worked. This more than doubles the maximum payment to £1,541.75 a month. In the most generous case, the taxpayer will now go from funding 22% of wages to just under half.

• Additional support for the hospitality and leisure businesses in tier two areas. English councils will be funded to give monthly grants of up to £2,100 to 150,000 hotels, restaurants and B&Bs.

• Self-employment scheme has also been doubled from 20% to 40% of profits, with a maximum grant now of £3,750 over a three-month period.

• Employers will continue to receive the £1,000 Job Retention Bonus.

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