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Job Support Scheme

Job Support Scheme

The Job Support Scheme, which was due to start on 1 November 2020, has been postponed as the Coronavirus Job Retention Scheme is being extended until the end of September 2021.


What is it? 

The Job Support Scheme will start in December 2020 to protect viable jobs in businesses who are facing lower demand over the winter months due to coronavirus. 

The government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand. 

Who is it for? 

The Job Support Scheme (JSS) will be open to businesses across the UK even if they have not previously used the furlough scheme, with further guidance in due course. 

Employers will be able to access the Job Support Scheme if:

  • they have enrolled for PAYE online
  • they have a UK, Channel Island or Isle of Man bank account

Additional eligibility criteria will apply depending on whether the employer has had to close due to local restrictions or not. Find more information regarding eligibility on the gov.uk website.

Large businesses will have to meet a financial assessment test based on turnover. Turnover must be lower now than it was before COVID-19 caused difficulties for the company. Further details about this test are to be published by HMRC in due course.

There will be no financial assistance test for small and medium-sized businesses.

How does it work? 

JSS grants do not cover employers’ National Insurance Contributions or pension contributions. Employers’ must pay these costs as usual. 

Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee.

This scheme is designed to sit alongside the Jobs Retention Bonus. Businesses can benefit from both schemes. 

Job Support Scheme Open 
Employers will continue to pay the wages of staff for the hours they work, but for the hours not worked, the government and the employer will each contribute towards the employees' salary. This means employees can take home at least 73% of their normal wages, where they earn £3,125 a month or less.

The breakdown between the government and employer is:

  • The government will pay 62% for hours not worked. They will make a grant to the employer up to a cap of £1,541.75 per month.
  • The employer will pay a further 5% of hours not worked up to a maximum of £125 per month, with the discretion to pay more than this if they wish.

Eligible employees must have been on payroll and have been included in a full payment submission made on or before 23 September 2020 and must be working at least 20% of their usual hours, reduced from 33% on the 22 October 2020.

Job Support Scheme Closed
Announced on the 9 October 2020, the government will support UK firms forced to shut by law, because of local or national coronavirus restrictions, by paying two-thirds of each employees’ salary (or 67%) where employees cannot work for a week or more. The employee will be paid by their employer and fully funded by the government, to a maximum of £2,083.33 per month, although their employer has the discretion to pay more than this if they wish.  Cash grants for businesses required to close in local lockdowns also increased to up to £3,000 per month. 

Employees may also be entitled to additional financial support, including Universal Credit.

What should I do next? 

The claims portal on gov.uk will open on 8 December 2020.

More detail about this process will be published in guidance by the end of October 2020, but you can find more information on the gov.uk website.

Agents who are authorised to do PAYE online for employers will be able to claim on their behalf.

Critchleys Clients: If you have specific questions, please contact your Critchleys Accountant directly. 

 


Published 24 September 2020 
Last Updated 2 November 2020 

2 November 2020
The Job Support Scheme, which was due to start on 1 November 2020, has been postponed as the Coronavirus Job Retention Scheme is being extended until December 2020.

23 October 2020
Employers will be able to access the Job Support Scheme if:

  • they have enrolled for PAYE online
  • they have a UK, Channel Island or Isle of Man bank account

The claims portal on gov.uk will open on 8 December 2020.

More detail about this process will be published in guidance by the end of October 2020, but you can find more information on the gov.uk website.

Agents who are authorised to do PAYE online for employers will be able to claim on their behalf.

22 October 2020
Employers will continue to pay the wages of staff for the hours they work, but for the hours not worked, the government and the employer will each contribute towards the employees' salary. This means employees can take home at least 73% of their pay for working a minimum of 20% of their normal hours.

The breakdown between the government and employer is:

  • The government will pay 62% for hours not worked. They will make a grant to the employer up to a cap of £1,541.75 per month.
  • The employer will pay a further 5% of hours not worked.

Eligible employees must have been on payroll and have been included in a full payment submission made on or before 23 September 2020 and must be working at least 20% of their usual hours, reduced from 33% on the 22 October 2020. This means employees now take home at least 73% of pay.

For businesses forced to close due to local lockdowns
Announced on the 9 October 2020, the scheme has been expanded so that from 1 November 2020 the government will support UK firms forced to shut by law, because of local or national coronavirus restrictions, by paying two-thirds of each employees’ salary (or 67%) where employees cannot work for a week or more, up to a maximum of £2,100 a month. Cash grants for businesses required to close in local lockdowns also increased to up to £3,000 per month. The government will cover 100% of those costs.

9 October 2020
As announced on the 9 October 2020, the scheme has been expanded so that from 1 November 2020 the government will support UK firms forced to shut by law, because of local or national coronavirus restrictions, by paying two thirds of each employees’ salary (or 67%), up to a maximum of £2,100 a month. Cash grants for businesses required to close in local lockdowns also increased to up to £3,000 per month. 

The Job Support Scheme will be reviewed in January 2021.

29 September 2020
Who is it for? 
Any employer with a UK bank account and UK PAYE scheme can claim the grant.

Large businesses will have to meet a financial assessment test based on turnover. Turnover must be lower now than it was before COVID-19 caused difficulties for the company. Further details about this test are to be published by HMRC in due course.

There will be no financial assistance test for small and medium-sized businesses.

How does it work? 
The breakdown between the government and employer is:

  • The government will make a grant to the employer equal to the cost of one third of hours not worked up to a cap of £697.92 per month.
  • The employer will bear the cost of a further one third of hours not worked.

Eligible employees must have been on payroll and have been included in a full payment submission made on or before 23 September 2020 and must be working at least 33% of their usual hours.

JSS grants do not cover employers’ National Insurance Contributions or pension contributions. Employers’ must pay these costs as usual. 

Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee.

What should I do next? 
The claims portal on gov.uk will open in December 2020.

24 September 2020 
First published. 

Find out more about Jen Sewell

Jen  Sewell

Jen Sewell

Jen is Critchleys Accounts Director

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