The Chancellor has released details on the new Job Support Scheme. This is split into two sections: JSS Open and JSS Closed. The new scheme will start on 1 November and run until 30 April 2021, although there is a review in January 2021.
This scheme will support businesses whose employees are working shorter hours than usual because of reduced demand. The employees need to work for at least 20% of their time and the employer will need to pay the employee for the hours that are worked.
Of the remaining time, the Government will pay 61.67% of the usual pay (capped at £1,541.75 per month). The employer will pay 5% of the usual pay for hours not worked up to a maximum of £125 per month. The employee will receive at least two-thirds of their usual wage for hours not worked and approximately 74% of their usual wage in total.
This scheme will support business that are forced to close as a result of the Covid-19 restrictions imposed by the Government(s) of the UK. Under this scheme the Government will fund two-thirds of employees usual wages for time not worked (capped at £2,083.33 per month). The employer will not need to contribute but the employer will have to pay employer national insurance and pension contributions.
The first claim can be made in arrears from 8 December for pay periods ending and paid in November. The scheme is open for all employees included on payroll between 6 April 2019 and 23 September 2020 and an employee on 23 September. This scheme is not linked to the previous job support scheme so therefore staff excluded from the summer scheme, possibly because of part time work in the March to June period, could qualify under the new scheme.
The Job Retention Bonus
This claim can still be made for employees who were furloughed under the summer scheme and are still on payroll at 31 January. Any application under JSS is in addition to the retention bonus.