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Job Support Scheme

The Job Support Scheme is designed to help employers facing reduced demand to help cover the costs of wages for staff whilst they are working reduced hours. This is fundamentally different from the Job Retention Scheme which required workers not to work to be eligible.

Under the new scheme, the employee will need to work a minimum of 20% of their usual hours and the employer will continue to pay them as normal for the hours worked.

The employer will pay 5% of reference salary for the hours not worked, up to a maximum of £125 per month, with the discretion to pay more than this if they wish. The government will pay the remainder of 61.67%, of reference salary for the hours not worked, up to a maximum of £1,541.75 per month. This will ensure employees continue to receive at least 73% of their normal wages, where they earn £3,125 a month or less.

Additionally, for employers legally required to close due to government restrictions, each employee who cannot work due to these restrictions will receive two thirds of their normal pay. This will be paid by their employer but fully funded by the government, to a maximum of £2,083.33 per month, although their employer has discretion to pay more than this if they wish.

The Job Support Scheme will be open from 1 November 2020 and run for 6 months, until 30 April 2021. The government will review the terms of the scheme in January. Employers will be able to claim in arrears from 8 December 2020, with payments made after the claim has been approved.

Further information and eligibility criteria can be found here.