*Update* On Thursday 5th November 2030, the UK government confirmed a further extension of CJRS until the end of March 2021 the JSS introduction is delayed.
Plan for Jobs: Chancellor increases financial support for businesses and workers
The government today announced it will significantly increase the generosity and reach of its winter support schemes to ensure livelihoods and jobs across the UK continue to be protected in the difficult months to come, supporting jobs and helping to contain the virus.
Open businesses which are experiencing considerable difficulty will be given extra help to keep staff on as government significantly increases contribution to wage costs under the Job Support Scheme, and business contributions drop to 5%
In recognition of the challenging times ahead, the Chancellor said he would be increasing support through the existing Job Support scheme.
Chancellor of the Exchequer Rishi Sunak said:
I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today. These changes mean that our support will reach many more people and protect many more jobs.
I know that the introduction of further restrictions has left many people worried for themselves, their families and communities. I hope the government’s stepped-up support can be part of the country pulling together in the coming months.
Job Support Scheme (JSS)
Recognising the pressure businesses in some sectors and areas are facing, today’s announcement lightens the burden of keeping on staff.
When originally announced, the JSS – which will come into effect on 1 November – saw employers paying a third of their employees’ wages for hours not worked, and required employers to be working 33% of their normal hours.
Today’s announcement reduces the employer contribution to those unworked hours to just 5%, and reduces the minimum hours requirements to 20%, so those working just one day a week will be eligible. That means that if someone was being paid £587 for their unworked hours, the government would be contributing £543 and their employer only £44.
Employers will continue to receive the £1,000 Job Retention Bonus.
The Job Support Scheme Closed for businesses legally required to close remains unchanged. It helps businesses pay their employees’ wages if they are legally required to close due to coronavirus restrictions – Government pays 67% of employees’ wages – Employers pay nothing towards wages
Job Support Scheme
- The JSS starts to operate from 1 November and covers all Nations of the UK. For every hour not worked, the employee will be paid up to two-thirds of their usual salary.
- The government will provide up to 61.67% of wages for hours not worked, up to £1541.75 per month (more than doubling the maximum payment of £697.92 under the previous rules). The cap is set above median earnings for employees in August at a reference salary of £3,125 per month.
- Example: a typical full-time employee in the hospitality industry is paid an average of £1,100 per month. Under the Jobs Support Scheme for open businesses, they will still take home at least £807 a month. All the employer needs to pay is a total of £283 a month or just £70 a week; the government will pay the rest.
- Employers using the scheme will also be able to claim the Job Retention Bonus (JRB) for each employee that meets the eligibility criteria of the JRB. This is worth £1,000 per employee. Taking JSS-Open and JRB together, an employer could receive over 95% of the total wage costs of their employees if they are retained until February.
- For more information see
Please be a little cautious on the values issued by the press release, these may require a little more refinement and still contain a few potential inaccuracies in calculation of this breaking news.
Employers have been desperately waiting for details on the new Job Support Scheme, and today it changed further with more generous concessions. Many employers were making decisions on the basis of former schemes, many to not participate.
Now with the new measures U.K. PLC need to reconsider the implications and whether jobs can be protected during this next difficult period.
And now we await the more definitive details.
PAYadvice.UK 22/10/2020 last updated 5/11/2020