Last Thursday (24th September 2020) the Chancellor announced the new Jobs Support Scheme which will replace the current CJRS from 1st November 2020. We have been awaiting, and hoping for, more detail before communicating with you. However, whilst the new scheme has been announced the practical, detailed, guidance is still awaited so we thought we’d share with you what we do know so far.
The Aim of the Scheme
This is to support people in work, giving employers the option to keep people in work on shorter hours if necessary.
How long will the scheme run for?
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.
Employees on notice of redundancy are not eligible for the scheme (unlike the furlough and flexible furlough schemes).
How much will the employee receive?
To be eligible, employees must work a minimum of 33% of their normal weekly hours. This will apply for the first 3 months of the scheme with the Government reserving the right to increase this after that.
Of the balance of their hours i.e. hours not worked the Government will pay 1/3 (up to a maximum of £697.92 per month), the employer will pay 1/3 (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.
“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.
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.
