The opening of this scheme has been postponed, and has been replaced with the extended Coronavirus Job Retention Scheme (CJRS). The Job Support Scheme is expected to come into use once the CJRS ends.
The aim of the Job Support Scheme is to keep employees in their jobs on shorter hours for businesses that are facing lower demand due to the pandemic, as well as providing support to businesses whose premises have been legally required to close due to Coronavirus restrictions. This scheme is available to all small and medium sized businesses. Larger businesses are eligible if their turnover has reduced and these larger businesses will have to meet a financial assessment test. The scheme has been extended for businesses required to close their premises due to local coronavirus restrictions.
1.Open Job Support Scheme – for businesses which are open
Employers (who are not closed due to local restrictions) will continue to pay staff for the hours that they work, but for any hours not worked, the employee will receive 67% of their normal pay. The Government will cover 62% of the lost salary and the employer will cover 5%. To qualify, employees must be working at least 20% of their usual hours, the employees must have been on the payroll and the RTI payroll submission must have been sent on or before 23 September 2020. The grant will be calculated based on employee’s usual salary, capped at £1,541.75 per month. For example if an employee normally earns £2,000 per month, and they are now working half of their normal hours (so earning £1,000 in normal pay), 67% of the £1,000 “lost” pay will also be payable, which will be funded £50 by the employer (5%) and £617 by the Government (62%), resulting in £1,667 total pay for the employee.
2.Closed Job Support Scheme – for businesses which are closed due to local lockdown restrictions
Employers whose premises are legally required to close for a period of time as part of local or national restrictions will receive grants to pay the wages of staff who cannot work. The Government will support eligible businesses by paying two thirds of each employees’ salary (or 67%), up to a maximum of £2,100 per month. To qualify for the grant, employees must be off work for a minimum of 7 consecutive days.
Other points to note:
- Grant payments will be made monthly in arrears, reimbursing the employer for the Government’s contribution.
- There is no requirement for the employees under the Jobs Support Scheme to have been furloughed previously.
- The grant will not cover Class 1 employer NICs or pension contributions and these contributions will remain payable by the employer.
- Employers must agree the scheme with the relevant employees, making changes to employment contracts by agreement and notifying employees in writing.
- HMRC intend to publish the name of employers who have used the scheme so that employees will be able to find out if their employer has claimed for them using the scheme.
- Guidance regarding what counts as a ‘usual wage’ has not been released yet.
Full guidance will be issued by HMRC in due course.
