New Jobs Support Scheme & extension of the SEISS
Updated 24th September 2020
The Chancellor, Rishi Sunak, has set out the government's new job retention measures in a statement to the House of Commons today.
The furlough scheme will come to an end, as planned, on 31 October 2020.
The new Jobs Support Scheme involves the government supporting the wages of people in work, giving employers the option to keep people in work on shorter hours, rather than make them redundant.
Employees will have to work at least one-third of their normal hours, and be paid for that by the employer. The Government, together with employers, will then increase those people’s wages covering two-thirds of the pay they have lost by reducing their working hours, and the employee will keep their job. This means an employee working 33% of their hours will earn at least 77% of their usual pay - 55% paid for by their employer, 22% by the Government. The Government will pay a maximum of £697.92/mth.
Who is eligible?
- All SMEs are elgibile, and larger businesses will be eligible if, their turnover has fallen through the Covid crisis.
- The new scheme is open to all employers, even if they were not previously used the furlough scheme.
The scheme will run for six months from November. Employers retaining furloughed staff on shorter hours can be part of the scheme and still get the job retention bonus he announced earlier this summer.
The self-employed grant is being extended on similar terms and conditions to the new Jobs Support Scheme, However not much detail has been provided yet.
Other announcements include a new “Pay as you Grow” scheme which will allow firms to repay Bounce Back Loans gradually over a period of up to 10 years, and a commitment to keep VAT at 5% for hospitality and tourism until 31 March 2021.
If you have concerns or questions, please contact us on 01932 830664 or through your usual client partner contact. As further details are announced, we will keep you informed.
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