The Chancellor of the Exchequer has announced a new economic package to support jobs including a new Job Support Scheme which will apply from November.
The features of the scheme which have been announced are as follows:
- The scheme is aimed at protecting viable jobs;
- In order to access the scheme, employees must be brought back to work at least one-third of their normal working hours, which will be paid by the employer. The Government will pay a subsidy for one-third of the hours lost , and the employer will pay one-third;
- This means the employee will receive 77% of normal pay for 33% of normal hours, of which 55% is paid by the employer and 22% by the Government, with the Government subsidy capped at £697.92 per month;
- The scheme will last for 6 months from November;
- All small and medium sized employers can access the scheme.
- Large employers can only access the scheme if their turnover has reduced (we do not yet know whether a particular level of loss of turnover will be required or how that will be evidenced);
- Employers can access the scheme regardless of whether they furloughed workers under the CJRS;
- Employers who bring furloughed workers back on this scheme can also claim the Job Retention Bonus (provided they qualify under the conditions of that scheme); and
- Employers who access the scheme will not be able to give notice of redundancy to employees in respect of whom they use the scheme before the scheme ends.
The Treasury has published a factsheet on the rules of the new scheme which is available here. More detailed guidance will be published ‘shortly’ (no indication of time frame as yet).