Getting Up to Speed With the Government’s New Job Support Scheme

Written by EFP

As the government’s new Job Support Scheme is set to replace the current furlough system, here’s all you need to know about how it can support individuals and businesses to deal with the challenges created by coronavirus this winter.

The chancellor Rishi Sunak has recently unveiled a major overhaul of the Job Support Scheme and announced additional support for those hit hardest by the pandemic. These changes are directly aimed at businesses that were negatively impacted by local lockdown restrictions but previously unable to access the support made available for employers told to close their doors.

Updated Support Measures

The latest changes mean businesses will now have to contribute significantly less than initially announced to access Jobs Support Scheme funding, and will also particularly benefit those that lay within tier 1 and tier restrictions, helping them to continue operating and protecting jobs.

  • Employees are now required to only work 20% of their usual hours to benefit from the JSS, down from 33%
  • Employers will now only have to contribute 5% of lost wages for the time employees are not working, down from 33% as announced previously
  • The government has increased its own contribution towards lost wages to 62% and doubled the cap to £1541.75
  • Grants for the self-employed have been doubled to 40% of previous earnings

To help further understand these changes, the government has released this factsheet with examples of the JSS in practice.

JSS Open and JSS Closed

As part of the scheme, it will separate claims into two distinct categories – ‘Job Support Scheme Open’ and ‘Job Support Scheme Closed’.

JJS Open is available to employers who are still able to provide its workers with 20% of their usual working hours and for every hour not worked, the employee will be paid up to two-thirds of their usual salary.

JJS Closed is aimed to supporting businesses that have been forced to close by local coronavirus restrictions set by the government, and employees 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.

Employees may also be entitled to additional financial support, including Universal Credit.

The Jobs Support Scheme opens on 1st November, with the first claims available to submit in December. Keep checking back for the latest up-to-date information and guidance and check out the Kickstart Scheme as well.

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