Michael Newman – NewmanHR

Job Support Scheme Extension

You will have read about Chancellor Rishi Sunak latest announcement which is an extension to the Jobs Support Scheme, which is due to begin on 1 November 2020.Today’s announcement targets businesses who re required to shutdown due to local lockdowns and is in addition to the existing schemes announced.The final direction has still to be issued but the basics are set out below

Last month, the government announced how the Jobs Support Scheme would contribue 1/3rd of the shortfall of wages (capped at £697.72pm) for employees who were working reduced hours, but working at least 33% of their normal (pre-furlough) hours. The employer would contribute a further 1/3rd of the shortfall, and the employee would forego the final third.

The extension applies to any businesses required to close their premises due to local or national coronavirus restrictions. In that situation, the government will pay two thirds of their employees’ salaries, up to a maximum of £2,100 per month. Under the scheme, employers will not be required to contribute towards wages and will only be asked to cover NICS and pension contributions.

Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days.

The scheme will begin on 1 November and will be available for six months, with a review point in January. In line with the rest of the JSS, payments to businesses will be made in arrears, via a HMRC claims service that will be available from early December. Employees of firms that have been legally closed in the period before 1 November are eligible for the CJRS.

The scheme is UK wide.


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