Today, the Chancellor has confirmed that the furlough scheme will still end on 31 October 2020 and announced the new Job Support Scheme. This is to protect viable jobs facing lower demand over the winter due to Coronavirus and gives employers the option to keep employees employed on shorter hours rather than make them redundant.
The Job Support Scheme will run from November to April with all SME’s being eligible with restrictions for larger businesses where turnover has fallen during the Coronavirus pandemic. Businesses do not need to have used the existing furlough scheme to claim.
Employees will need to work a minimum of 1/3 of their normal hours in which this will be paid by the employer. For the remaining hours not worked, the government and employer pay 1/3 wages each. The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month.
It is designed to sit alongside the Jobs Retention Bonus and could be worth over 60% of average wages of workers who have been furloughed – and are kept on until the start of February 2021. Businesses can benefit from both schemes in order to help protect jobs.
The Chancellor has said that further detail will be published in the coming weeks. We await this crucial information!