Job Support Scheme recalculated prior to roll-out

Published:  23 October, 2020

 The Job Support Scheme, which is set to succeed the furlough on 1 November, has been amended before it has been unrolled.

Responding to concerns about the impact on jobs if the scheme were to be enacted as originally designed, Chancellor of the Exchequer Rishi Sunak announced yesterday (Thursday 22 October) that thanks to revisions, employers are set to be asked to pay less, and employees will be required to work less hours before qualifying.

Under the re-organised scheme, businesses will contribute a 20% minimum portion of usual hours worked, as well as 5% of usual hours not worked. A further 62% of un-worked hours will be paid by government, effectively doubling the maximum to £1,541.75 per month.  

While the specifics of the Job Support Scheme have been altered, it will still be open as before to all small businesses, as well as to larger businesses that show they are experiencing  revenue reductions resulting from the pandemic.

The fact that businesses in Tier 2 restriction areas were receiving less help compared with those in Tier 3 has led to the changes.

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