Coronavirus Update - Jobs Support Scheme announced

With new government guidance on Covid coming into force today and the current furlough scheme coming to an end next month, as expected, the Chancellor has today announced a new scheme to help businesses.  The Jobs Support Scheme will commence from November replacing furlough alongside additional measures to help the self-employed and businesses.

Summary of the Job Support Scheme.

  • Under the scheme, the government will subsidise the pay of employees who are working fewer than normal hours due to lower demand
  • It will apply to staff who can work at least a third of their usual hours
  • Employers will pay staff for the hours they do work
  • For the hours employees can't work, the government and the employer will each cover one third of the lost pay
  • Employees working 33% of their hours will receive at least 77% of their pay
  • The grant will be capped at £697.92 per month
  • All small and medium sized businesses will be eligible for the scheme
  • Larger business will be eligible if their turnover has fallen during the crisis
  • It will be open to employers across the UK even if they have not previously used the furlough scheme
  • The scheme will run for six months starting in November
  • For someone on £2,000 a month working 50% hours, they would get £1,000 normal pay plus £333 extra from their employer and £333 from the government.

CONTACT US

If you require advice on this or any other employment law related issue, please contact the Employment team at Downs Solicitors LLP.

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