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The Job Support Scheme - Major Changes Announced

The Chancellor announced adjustments to the scheme to aid businesses and employees. Helen Crossland and Fiona Mendel summarise the key points.

As the furlough scheme draws to a close at the end of next week, the Chancellor has today announced adjustments to its replacement from 1 November 2020 - The Job Support Scheme.

The headline points are:

  • The Job Support Scheme (“JSS”) already provided that from 1 November, the Government will pay two-thirds of wages for businesses ordered to close during local or national lockdowns
  • The scheme will cover all businesses in tier 3 where employees cannot work for one week or more
  • Businesses will receive a maximum £2100 per month cash grant primarily to assist those in the hospitality, accommodation and leisure sector
  • For other businesses across all three tiers which are not forced to close, wages can be claimed under the JSS where employees can work at least 20% of their normal hours (previously set to be a third)
  • The employer must pay for any hours worked. In respect of the normal hours not worked by an employee, the government will pay at least 62% of these with the employer’s contribution dropping to 5% (previously set to be 33%)
  • The result is an employee will receive a minimum of 73% of wages under the JSS for working a minimum 20% of their normal hours, effectively one day a week for a full-time employee, with the employer paying less than previously outlined
  • The government has also extended business grants to organisations across all three tiers (which can be backdated to August 2020 where businesses have been subject to higher COVID-19 restrictions since the summer) and increased support to the self-employed
  • Employers will continue to be eligible for the £1000 Job Retention Bonus upon the JSS commencing on 1 November 2020

Should you have any queries on the above or require any employment related advice, please contact Helen Crossland at or on 020 7725 8034 or Fiona Mendel at or on 020 7725 8033.

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