28 Sep The Winter Economic Plan Job Support Scheme
What is the Job Support Scheme?
As furlough draws to an end in a matter of weeks many of us have questioned what’s around the corner. Rishi Sunak has announced the Job Support Scheme as part of the wider Winter Economic Plan. Here’s what we know so far…
When does the Job Support Scheme start?
The scheme will start on 1st November as a replacement to the job retention scheme which ends on 31st October. It will run for 6 months.
Which employee’s will be eligible?
It appears that the scheme will be open to all employees who were included in an RTI submission on or before 23rd September. Employees must be working at least a third of their normal hours. Those workers who have not been furloughed in the job retention scheme can be included.
Which employers are eligible?
The scheme will be restricted to SMEs and medium sized businesses. Only larger employers who have impacted turnover will be included.
How does the Job Support Scheme work?
Employees must work at least a third of their normal hours which they will be paid for as normal. A third of their remaining normal pay will be covered by the government and a third covered by the employer. As a result the employee will receive just over 77% of their normal wage. Employers will still be responsible for any employers NIC or employers pension costs.
As always we await the finer detail and guidance on both the calculation and reclaim processes. To be kept informed on payroll updates sign up to our newsletter.