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28

Sep 2020

What is the Job Support Scheme and how does it work?

Why has the Job Support Scheme been introduced?

The Job Support Scheme is designed to protect viable jobs in businesses that are experiencing lower demand due to the Covid-19 outbreak over the winter period and help keep employees retained in the workforce on shorter hours, rather than making them redundant.

What is the Job Support Scheme?

Employers will continue to pay employees for time worked, but for any time not worked, the Government and employer will each contribute one third of the equivalent salary for those hours.

This means in addition to full pay for time worked, the employee will also receive two thirds of their salary for any hours not worked, entitling them to a minimum of 77% of their original salary. Employees are able to work more than a third of their contractual hours, but the amount offered by the Government will be reduced.

Example:

The Government contribution will be capped at £697.92 a month.

Eligibility

Employers:

  • All employers with a UK bank account and UK PAYE scheme can claim the grant.
  • Large businesses in addition, will need to meet a financial assessment test and the scheme will only be available if turnover is lower now than prior to the Covid-19 outbreak.

Employees:

  • Must be on an employer’s PAYE payroll on or before 23 September 2020.
  • For the first three months of the scheme, the employee must work at least 33% of their usual hours. The Government will review whether this minimum threshold will be increased following the first three months.

When does the scheme open?

The scheme starts on 1st November 2020 and runs for 6 months. Employers will be able to claim online via Gov.uk from December 2020 and will be paid on a monthly basis in arrears. Further guidance on applying will be published.

Does this affect the Job Retention Bonus?

No. Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.

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