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New Job Support Scheme as at 24th September 2020

Dear clients and contacts,

We hope you are coping well and making the best of our current situation.

This briefing is to provide you with what little information we currently know about the announcement today by Rishi Sunak about the new Job Support Scheme. As more detailed guidance is published we will update you again, but for now, have a read and sit tight.

Job Support Scheme – what we know so far:

  1. There is a Job Support Scheme Factsheet published by the Government – please click the link for the full details. We recommend printing this out to refer to if you intend to use the scheme.
  2. It will begin on the 1st November 2020 and run for 6 months, ending on the 30th April 2021.
  3. It is open to all SME employers with a UK banking facility and UK PAYE scheme in place on or before the 23rd September 2020. Only larger businesses will have to meet a financial assessment test.
  4. Employees will need to work a minimum of 33% of their usual or contracted hours for the first 3 months of the scheme (this may be subject to increase by government after 3 months). For every hour not worked the employer and the government will each pay one third of the employee’s usual pay, and the government contribution will be capped at £697.92 per month. The employer can choose to top this up to 100% at their own expense.
  5. Employees using the scheme will receive at least 77% of their pay up to the cap of £697.92 per month.
  6. Employees can come on and off the scheme, but each period on the scheme must be for a minimum of 7 days (it is not yet clear if this is calendar or working days).
  7. The employer will be reimbursed in arrears for the government contribution and claims can be made from December 2020.
  8. The scheme does not cover Class 1 employers NIC’s or pension contributions, which remain payable by the employer.
  9. The employee must not be made redundant or put on notice of redundancy during the period the employer is claiming the grant for that employee. This is a big difference from the Furlough scheme, which did allow for it to cover redundancy notice periods. This is because the intention of the scheme is to support roles which will remain but are impacted by a reduction in demand due to Covid over the Winter period.
  10. Previous use of the Furlough scheme is not a pre requisite of using this scheme.
  11. The employee must be on payroll on or before the 23rd September 2020.
  12. Employers can use this scheme alongside the January £1000 Job Retention Bonus, if they meet eligibility requirements.
  13. Employee agreement, in writing, similar to that required for the Furlough scheme is required.
  14. As you would expect, HMRC will be checking on claims to minimise fraud or incorrectly made claims, so be sure to following the full guidance carefully, once it is issued.

Watch this space for further updates…..

We hope this is helpful and you stay safe and well.

Kindest regards
Grassroots Team

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