The Furlough Scheme came to an end on 31 October, but some business sectors remain subject to restrictions. In his Winter Economy Plan, the Chancellor, Rishi Sunak, announced a new Job Support Scheme, which will replace the Furlough Scheme. The scheme was subsequently expanded to provide a higher level of support to businesses that were forced to close as a result of the imposition of Coronavirus restrictions.
The Job Support Scheme runs from 1 November 2020 to 30 April 2021. Under the scheme this will apply:
- Employees now need to work only 20% of their normal hours, (rather than 33%, to qualify)
- Employers now need to top up 5% of non working hours (rather than 33%)
- HMRC will top up 61.67% of non working hours (rather than 33%)
- see more info about detailed calculation examples in attached link
A claim can only be made in respect of an employee who was on the employer’s payroll on 23 September 2020. The employee does not need to have been furloughed under the Coronavirus Job Retention Scheme for a grant to be claimed on their behalf under the Job Support Scheme.
Higher support for business forced to close
Where a business is forced to close as a result of Coronavirus restrictions, the Job Support Scheme will pay two-thirds of an employee’s wages up to a maximum of £2,100 a month. The employer must meet the cost of the associated employer’s National Insurance and any employer pension contributions due under auto-enrolment. However, as with the basic scheme, claims can only be made in arrears, presenting a cashflow challenge for closed businesses.
Partner note: www.gov.uk/government/publications/job-support-scheme, https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/925672/20201009_JSSC_Factsheet_FINAL_EG_1516_002_.pdf