· Chancellor Rishi Sunak has set out plans for the new Job Support Scheme which is due to commence on 1st November 2020.
· The scheme will replace the furlough scheme which will end on 31st October 2020.
· It is estimated that around 3 million of the UK’s workers are currently on furlough.
· The Job Support Scheme will run for six months and is open to any small and medium sized business.
· For a larger business to access the scheme their turnover should have fallen during the Covid-19 pandemic.
· Employers who have not previously used the furlough scheme will still be eligible for the Job Support Scheme.
· Employees will work a minimum of 33% of their hours which will be paid for by their employer.
· For the hours that are not worked, the government and the employer will each pay one third of their equivalent salary.
· The grant will be based off the employee’s usual salary but the maximum that can be received is £697.92 a month.
· This means that employees on the scheme will receive a minimum of 77% of their usual pay.
· It is expected that the scheme will cost the government around £300 million a month.
· Its aims to prevent mass job cuts after the government’s recent announcement of new social distancing measures to hinder the rise of Covid-19 cases in the UK.
· These changes should allow more flexibility for businesses adapting to post-Covid demands with less high street footfall, the rise of home working and growth of e-commerce .
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This article is prepared with the intention of providing general information on the changes in law. Philip Ross Solicitors accept no responsibility for errors it may contain and the coverage of the topic is not comprehensive. You are advised to speak directly to the writer or another partner within this firm with any specific enquiries on the topic addressed.