Millions of jobs continue to be supported as Job Support Scheme (JSS) launches – now delayed due to extension of CJRS

*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.

Millions of jobs continue to be supported over the winter with the government’s JSS from Sunday, 1 November.

  • combined with the Job Retention Bonus (JRB), the Job Support Scheme (JSS) will cover at least 95% of the total employment costs for average previously furloughed employee until February
  • when factoring in the JRB analysis shows employers will receive the full employment costs of around half of people on JSS Open – which is available from Sunday
  • data shows the Coronavirus Job Retention Scheme (CJRS) has protected jobs – with 90% of people returning to the same job after furlough

Chancellor of the Exchequer, Rishi Sunak, said:

I’m pleased that the IMF this week called our response to the pandemic one of the best examples of coordinated action globally – the furlough scheme has been central to that, supporting 9.6 million jobs through some of the most challenging economic times.

But it’s right that as we move towards a more targeted approach to tackle the virus, our support becomes more targeted too.

The Jobs Support Scheme will continue to protect jobs throughout the difficult months ahead and is part of our comprehensive Plan for Jobs.

The JSS scheme is designed to support businesses across the UK who are either legally required to close or facing lower demand. Under the JSS Open part of the scheme, the government contributes 62% towards the wages of staff for the hours they do not work, whilst the employers pay just 5% plus NICS and pensions contributions. Employees receive a minimum of 73% of their wages.

Under JSS Closed, for businesses legally required to close, the government pay two thirds of the employees’ salary with employers covering NICs and pension contributions.

Firms who retain staff that have previously been furloughed until the end of January will also receive a £1,000 per eligible employee payment under the JRB.

The two schemes (JSSO and JRB) will cover 95% of the employment costs of the average previously furloughed employee until the end of January. For those earning less than £1,100 per month the JRB offsets all the employer costs of the JSS Open. Under the original CJRS around half of furloughed workers had earnings below this level.

For many lower earning employees on Universal Credit (UC), the combined impact of the support of the JSS and UC will mean they could receive around 90% of their normal net income (whilst working only 20% of the hours).

The CJRS closes on Saturday 31 October ahead of the JSS launch on Sunday 1 November. As the scheme draws to a close, data published by HMRC shows that during the scheme’s eight month life it has protected 9.6 million jobs through some of the most challenging economic times the country has ever faced – with 90% of those coming off furlough by August returning to the same job.

Further information

PAYadvice has put together a page of links which outline the guidance on JSS.

PAYadvice.UK 31/10/2020 updated 6/11/2020

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