Yesterday the Chancellor announced increased support for businesses. This post summarises the things that have changed since our article on 25th September, which you can find here
Job Support Scheme (replaces the Furlough Scheme)
- The current furlough scheme is coming to an end on 31st Oct 2020 and it will be replaced by the Job Support Scheme (JSS)
- JSS will take effect from 1st November 2020 and will run for six months
- It’s available to all employers including those that didn’t or couldn’t take advantage of the furlough scheme
- The JSS is designed to cover staff that are working part-time as a result of lockdown measures and/or lower demand and is calculated as follows:
- You (as the employer) pay for the reduced time that your employee is working (pro-rated salary). Keep in mind that your employee now only needs to be working 20% of their normal hours (previously it was 33%).
- For the remaining hours that your employee is not working (but would ordinarily be working ) the government will make a top-up payment equal to 61.67% of the cost of these remaining hours and you will have to pay the other 5%. Below is a worked example:
Self Employment Income Support Scheme (SEISS)
- The SEISS is being extended to the end of January 2021
- To claim for this extended period you must already be eligible for SEISS and you must be continuing to actively trade.
- You will be able to claim an initial lump sum covering the three month’s worth of profits from November 1st 2020 to January 31st 2021. This is now worth 40% of your average monthly profits (it was 20%) up to a total of £3,750.
- From the 1st February 2021 a second grant scheme will be available with details to follow nearer the time.
Job Retention Scheme
- The £1000 job retention bonus is still in place
- For those who need a reminder this is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the job retention scheme, and who remain continuously employed through to 31 January 2021
- Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021
Related Post: Update on the Coronavirus Job Retention Scheme