Job Support Scheme
31st October 2020 marks the end of The Job Retention Scheme – or furlough – which was introduced by the government to aid businesses and support employees. In it’s place is The Job Support Scheme, which has been created to support individuals and businesses with the challenges created by Covid-19 in recent months. This scheme has recently been updated and the changes will be detailed below. It will come into force from 1st November 2020 and will run for six months, until 30 April 2021, with a review of the terms due to occur in January. All employers with a UK bank account and UK PAYE schemes can claim the grant.
- Neither the employer nor the employee needs to have benefitted from The Job Retention Scheme (furlough) in order to be qualified for the Job Support Scheme.
- The employee will be required to work a minimum of 20% of their normal hours and will be paid normally for these hours.
- Employees will receive 66.67% of their usual pay for the hours not worked – paid in part by the employer and in part by the government.
- The employer will be required to pay 5% of the hours not worked, up to a maximum of £125 a month – they may pay more if they desire.
- The other 61.67% will be paid by the government, up to a maximum of £1541.75.
- Employees must be on an employer’s PAYE payroll between 6 April 2019 to 23:59 23 September 2020.
- Large businesses (250 + employees) will have to meet a financial impact test. SMEs and charities will not have to take the test.
Due to these conditions, employees that are eligible for the scheme will continue to receive at least 73% of their normal wage, where they earn £3125 a month or under. From 8th December 2020, employers will be able to make a claim online through Gov.uk and they will be paid on a monthly basis.
Job Retention Bonus
The Job Retention Bonus is a one-off taxable payment of £1000 to an employer for each eligible employee that was furloughed and continuously employed by you until 31st January 2021. The bonus can be claimed between 15th February 2021 and 31st March 2021 – this money does not have to be paid to your employee. The eligible employee cannot be serving a notice period on 31st January 2021. You must also meet the minimum income threshold.