In this quick blog, we’ve summarised the key things to know about the new COVID-19 Job Support Scheme.
Many of us have spent the last few weeks anticipating news from the Government regarding the possible extension or replacement of the current employee furlough scheme, which affects an estimated three million workers in the UK, and is due to end on 31st October.
We received that news on 24th September, as the Chancellor of the Exchequer, Rishi Sunak, announced that from 1st November, organisations could apply to a new Job Support Scheme. Notably, this isn’t an extension of the current scheme, but rather a new scheme entirely.
In this quick blog, we’ve summarised the key things to know. Please bear in mind that these are just first details, and that we expect to publish further information once more guidance becomes available.
What is the Job Support Scheme?
Like the Coronavirus Job Retention Scheme, the Job Support Scheme is designed to help employers to retain staff who are working fewer hours due to low demand. It will run for a period of six months, from 1st November 2020 to 30th April 2021.
During this period:
Which organisations are eligible?
Which employees are eligible?
How can employers claim?
Employers will be able to start claiming through Government’s online portal from December 2020. Since grants are payable in arrears, employers can only submit a claim in respect of a given pay period, once the payment has been made to the employee by the employer, and that payment has been reported to HMRC via RTI return.
Say that an employee, Matthew, normally works five days a week and earns £400. He is put on the Job Support Scheme, working two days a week (or 40% of his usual hours). How would he be affected?
The percentage cost to the employer and the Government will vary according to the number of hours the employee is able to work. In other words, if the employee is able to work a higher number of hours, the grant provided by the government will be lower, and vice-versa.
If the employee works the minimum of 33% of their normal working hours, the employer will receive a Government grant of up to 22% of the employee’s wages (capped at £697.72).
Further information for Zellis customers
We expect further technical guidance to be provided by HMRC within the next two weeks. We're already working out the best way to help our customers make these changes. As soon as we can provide an update on our plans, with the additional clarification from HMRC, we will be in touch.
In the meantime, if you’re planning to use the Job Support Scheme, we suggest that you:
If you have any queries or concerns at this stage, please get in touch with your Account Manager or ITCAM in the first instance.
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