The Coronavirus Job Support Scheme will begin on 1st November. It follows on from the Furlough Scheme, which will end on 31st October.
What is the Coronavirus Job Support Scheme?
The Coronavirus Job Support Scheme aims to protect jobs in businesses who are facing lower demand over the winter months due to the pandemic.
It has now also been announced that the scheme will be expanded to include support for businesses required to close their doors as a result of increasing coronavirus restrictions.
How will the scheme work?
Part-time Job Support Scheme
Businesses which are open but only able to bring their employees back on a part-time basis can use the Coronavirus Job Support Scheme.
Staff must work at least a third of their hours in order to qualify for the scheme; the government and the employer will then each pay one third of the remaining wages. The employee would then receive a minimum of 77% of their pay, subject to the government contribution cap of £697.92 per month.
Employers who meet the eligibility criteria for the Job Retention Bonus may still claim for this, in addition to using the Job Support Scheme.
Lockdown Job Support Scheme
This grant will be available to businesses who legally must close for a period over the winter as part of local or national coronavirus restrictions.
The government will support eligible businesses by paying two thirds of each employee’s salary (or 67%), up to a maximum of £2,100 a month.
Employers will not be required to contribute towards wages, but will need to cover National Insurance Contributions and pension contributions.
Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days.
BBC News shared this handy infographic, comparing the two parts of the Job Support Scheme with the Furlough Scheme:
How long will the scheme run for?
The scheme will begin on 1st November and will be available for six months, with a review point in January. Payments to businesses will be made in arrears, via a HMRC claims service that will be available from early December. Employees of firms that have been legally closed in the period before 1st November are eligible for the scheme.
Find out more
Our friendly, expert team are here to help if you’re not sure what will apply to your business – get in touch on 0131 502 0543 or email Hamish.Sheppard@crunchers-edinburgh.co.uk.