Job Support Scheme

This month, Jobcentre Goole talks to us about the Government’s Job Support Scheme (JSS) designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce.

The Job Support Scheme will open on 1 November 2020 and run for six months.

Employers will continue to pay their employees for time worked, but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.

The Government will pay a third of hours not worked up to a cap (the Government contribution is capped at £697.92 per month), with the employer also contributing a third. This will ensure employees earn a minimum of 77% of their normal wages, where the Government contribution has not been capped. Employees must work at least 33% of their usual hours.

Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.

Expansion of Job Support Scheme
More recently the Government announced an expansion of the scheme, providing temporary support to businesses whose premises have been legally required to close as a result of coronavirus restrictions.

towards the wages of employees who have been instructed to and cease work? This will cover businesses that, as a result of restrictions set by one or more of the four governments of the UK, are legally required to close their premises, or to provide only delivery and collection services from their premises.

The Government will pay two-thirds of employees’ usual wages, up to a maximum of £2,100 per month. Employers will not be required to contribute towards wages, but do need to cover employer National Insurance and pension contributions.

Employers can apply for the scheme including the new expansion even if they haven’t previously used the Coronavirus Job Retention Scheme (CJRS). The scheme is available for six months, from 1‌‌‌ November, with payment of grants in arrears from early December. The scheme will be reviewed in January.

This is all part of the Chancellor’s Winter Economy Plan which is a package of measures that will continue to protect jobs and help businesses through the uncertain months ahead as we continue to tackle the spread of the virus.

The package also includes extending the Self Employment Income Support Scheme and 15% VAT cut for the hospitality and tourism sectors, and help for businesses in repaying government-backed loans.