'The government and firms will continue to top up wages of workers who have not been able to return to the workplace full time due to the coronavirus.'

24 September 2020

As the furlough scheme finishes at the end of October, as expected it will be replaced by a new Job Support Scheme. This new scheme strives to stop mass job cuts as the furlough scheme ends and as new restrictions are being brought in to force.

Rishi Sunak said, "the government will directly support the wages of people in work, giving businesses who face depressed demand the option of keeping employees in a job on shorter hours, rather than making them redundant,".

One aspect that differentiates the new Job Support Scheme and the soon to finish furlough scheme is that 'the new scheme would "support only viable jobs" as opposed to jobs that only exist because the government is continuing to subsidise the wages.'

This aspect is further reinforced by the Chancellor of the Exchequer saying "I cannot save every business, I cannot save every job."

So how will the Jobs Support Scheme work?

  • Under the scheme, the government will subsidise the pay of employees who are working fewer than normal hours due to lower demand
  • It will apply to staff who can work at least a third of their usual hours
  • Employers will pay staff for the hours they do work
  • For the hours employees can't work, the government and the employer will each cover one third of the lost pay
  • The grant will be capped at £697.92 per month
  • All small and medium sized businesses will be eligible for the scheme
  • Larger business will be eligible if their turnover has fallen during the crisis
  • It will be open to employers across the UK even if they have not previously used the furlough scheme
  • The scheme will run for six months starting in November