Rishi Sunak has today announced a new job support scheme which will subsidise the wages of people in work in the UK. This scheme will replace the furlough scheme which closes at the end of October.
Business owners will have the option to keep employees in work on shorter hours, rather than make them redundant. However, workers must work at least one third of their usual hours to qualify and for this employees will be paid by their employer. The new Government scheme will last for six months to 30 April 2021.
The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month.
For the balance of the employees time when they are not working, and not being paid by their employer, the Government will pay one third of their usual pay. As a result an employee will receive up to 77% of their usual pay.
This scheme however is targetted at businesses that need the help the most.
All small and medium-sized firms can apply.
It will only apply to larger companies if their turnover has falled by a third as a result of the health pandemic.
The new job support scheme will run for 6 months starting in November.
Businesses can claim both the job support scheme and the jobs retention bonus announced earlier in the Summer.
Businesses can access this scheme even if they have not previously accessed the original furlough scheme.
A grant for self-employed workers will be exended on similar terms.
Today Chancellor Rishi Sunak announced a new job scheme starting 1 November 2020 to replace the current Job retention (“furlough”) scheme which ends 31 October 2020.