Today the Chancellor announced changes to the Jobs Support Scheme to provide more support for businesses. Whilst primarily aimed at supporting business in Tier 2 restrictions, the new enhanced scheme will apply across all Tiers.
We don’t have any detailed guidance as yet but wanted to give you the heads up as soon as possible and we’ll let you know more as soon as we have it.
The Aim of the Scheme
This remains the same, to support people working in “viable” jobs, giving employers the option to keep people in work on shorter hours if necessary.
How long will the scheme run for?
Again, no change, it’s still 6 months from 1st November 2020.
Which employees are eligible?
The new scheme is open to all employees, even if they were not previously furloughed, provided they were on the HMRC’s RTI Information Submission on or before 23rd September 2020. In practice, for most employers this will probably mean those employees on the August RTI payroll submission as most monthly payroll RTI submissions for September will have been done after the 23rd September 2020; check with your payroll provider.
Employees on notice of redundancy are not eligible for the scheme (unlike the furlough and flexible furlough schemes) and that will apply up to and including 1st February 2021.
You must have a signed JSS Agreement in place with your employees to be eligible to participate in the scheme. We have drafted a template agreement and it’s in our Advice Line folder, together with other documents to support the JSS process. Please keep an eye on this Dropbox folder as we will regularly update the documents and add new ones as more guidance is published. If you would like us to produce individual JSS Agreements for your employees we are happy to do so for an additional admin charge.
What’s the new split going to be?
And here’s where the changes are!
To be eligible, employees must work a minimum of 20% of their normal weekly hours (previously announced as 33%). This will apply for the first 3 months of the scheme with the Government reserving the right to increase this after that time.
Of the balance of their hours i.e. hours not worked, the Government will pay 62% (there will almost certainly be a monetary cap but it’s not been announced how much yet, we would expect it to be pro-rata to previously, so circa £1,311.25), the employer will pay 5% (uncapped) and the employee will take a reduction in pay to meet the other 1/3. So, for an employee where their wages are under the Government cap they will receive 77% of their normal wages.
It is unclear whether there will be a change to the NICs and Pensions contributions. Previously, employers had to meet the total cost of NICs and Pensions on all elements of the payments.
“Usual wages” calculation will follow a similar methodology as the CJRS.
Employees can cycle in and out of the scheme (similar to flexible furlough) and need not have a fixed pattern although each short-time working arrangement must cover a minimum of 7 days.
What about the Job Retention Bonus?
Eligible employers using the Job Support Scheme will be able to claim the Job Retention Bonus of £1k per employee who was previously furloughed and brought back to work until at least 31st January 2021. To qualify, employees must earn a minimum of £530 in each of the three months (November, December and January).
More detail is available here https://www.gov.uk/government/publications/job-retention-bonus/job-retention-bonus
Want to know more?
If you want to read more on what detail is available have a look at the Government’s Winter Economy Plan available here:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/921059/CCS207_CCS0920237970-001_Winter_Economy_Plan_Web_Accessible.pdf
The Government has also published a fact sheet available here:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/921389/Job_Support_Scheme_Factsheet.pdf
As soon as we know more we’ll update you.
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Please note, this briefing is accurate at the time of writing and intended as guidance, it is subject to change as the COVID-19 and Government advice changes; it is not intended to replace advice so please do call us if you have any queries.
