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.
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