New Job Support Scheme Replacing Furlough Scheme

Published / Last Updated on 28/09/2020

The Job Retention Scheme, known as the Furlough Scheme, stops on 31/10/20.  It is being replaced by a new Job Support Scheme, essentially to try and continue to protect ‘viable’ jobs for employers but also support employers that may be impacted by further trade restrictions, local, regional or national lockdowns.  The Job Support Scheme starts on 01/11/20.

Criteria is as follows:

It is only available for ‘viable’ jobs.

The ‘acid test’ for viable jobs is that you can still work at least 33% of your normal workings hours.  If you/your employer cannot deliver at least 33% of your normal working hours even during lockdown, it is not considered viable and will not qualify for support.

  • The maximum support is 78% of your normal pay.
  • The government will fund a maximum of 22% of this support up to a maximum of £697 per month.
  • This means employers must fund 56% of your normal pay despite your only working 33% of your normal hours. 
  • Your employer will still be required to fund employers national insurance contributions
  • Your employer will also still be required to pay their share of workplace pension contributions.

If you work more than 33%, your pay will increase but government support will be reduced.  See the following support table:

% of Normal Hours Worked

33%

40%

50%

60%

70%

% of Normal Pay You Will Be Paid

78%

80%

83%

87%

90%

Pay is Funded by:

Gov. Support

22%

20%

17%

13%

10%

Employer Pay & Support

56%

60%

67%

73%

80%

Meaning Employer ‘Support’ broadly matches Gov. Support

Our view

Whilst the scheme is still beneficial, many employers will simply not be able to afford to pay the additional ‘free’ % of pay support on top of pensions etc based upon if you are only able to work at 33% capacity.

This Job Support Scheme will run for 6 months and will be reviewed in April 2021, when the government has suggested it will then move to lower support packages/% at that time.

We suggest the scheme has been designed to encourage employers to adapt their work practices to cope with a social distancing, self isolating and lock down world as well as moving workers that are not in viable jobs to either being made redundant and seek alternative ‘viable’ employment or move to redundancy benefits.


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