Job Support Scheme update

The Government has published details of the Job Support Scheme.  It can be found here: https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme

Some key points are:-

  • The Job Support Scheme provides different types of support to businesses according to their situation. Businesses that are operating but facing decreased demand can get support for wages through JSS Open. Those businesses that are legally required to close their premises as a direct result of coronavirus restrictions set by one or more of the four governments of the UK can get the support they need through JSS Closed.
  • The Job Support Scheme will be open from 1 November 2020 and run for 6 months, until 30 April 2021. 
  • The government will review the terms of the scheme in January. 
  • Employers will be able to claim in arrears from 8 December 2020 (this is when claims will open), with payments made after the claim has been approved.
  • Employers will be able to access the Job Support Scheme if:
    • they have enrolled for PAYE online 
    • they have a UK, Channel Island or Isle of Man bank account
    • Additional eligibility criteria will apply depending on whether the employer is claiming a JSS Open grant or JSS Closed grant.

JSS Open

  • Where businesses are operating but facing decreased demand. this gives employers the option of keeping their employees in a job on shorter hours rather than making them redundant.
  • The employee will need to work a minimum of 20% of their usual hours and the employer will continue to pay them as normal for the hours worked. 
  • Alongside this, the employee will receive 66.67% of their normal pay for the hours not worked – this will be made up of contributions from the employer and from the government. The employer will pay 5% of reference salary for the hours not workedup to a maximum of £125 per month,with the discretion to pay more than this if they wish. The government will pay the remainder of 61.67%, of reference salary for the hours not worked, up to a maximum of £1,541.75 per month. This will ensure employees continue to receive at least 73% of their normal wages, where they earn £3,125 a month or less.

JSS Closed

  • Where employers have been legally required to close their premises as a direct result of coronavirus restrictions, this will help them through the period that they are directly affected by these restrictions by supporting the wage costs of employees who have been instructed to cease work in eligible (closed) premises.
  • Each employee who cannot work due to these restrictions will receive two thirds of their normal pay, paid by their employer and fully funded by the government, to a maximum of £2,083.33 per month,

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