While the details are not yet fully available, the key points announced by Chancellor Rishi Sunak today are:
The Coronavirus Job Retention Scheme (CJRS)/furlough will end as planned at the end of October. For many employers, this may unfortunately mean that redundancies are necessary.
A new Job Support Scheme (JSS) has been introduced: the aim is stated to be to keep viable jobs. Three key principles were announced:
1. Viable jobs are being supported. This means that the employee needs to work at least 1/3 (33%) of normal hours which will be paid by the employer. For the remaining hours not worked, the employer pays 1/3 (so min 55% total) and the government pays 1/3 (so 22% total) and the employee waives the remainder (23%).
These figures are based on an employee working the minimum of 33% of normal hours who would receive 77% of normal pay.
2. The JSS targets specific firms – all SMEs plus larger employers who have suffered a reduction in turnover. It is not sector specific as had been speculated. Unfortunately, we do not yet have details on how reduction in turnover will be defined, and of course this will often be key to whether employers qualify.
3. The JSS is open to employers across the UK even if they have not previously used furlough. It will be available for 6 months starting from November. The JSS can be claimed in addition to the Job Retention Bonus where an employer qualifies (including keeping previously furloughed staff employed until the end of January 2021).
There is to be a similar scheme for the self-employed.
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