Category: Jobs

Chancellor Rishi Sunak announces expansion to the Job Support Scheme

Following an outcry from the business world as tier 2 and 3 restrictions come into play for various parts of the UK, the Chancellor has today announced an expansion to the level of support the Job Support Scheme will offer.

We have therefore updated our previous article to reflect the new level of support for the scheme, which comes into play on 1 November and is anticipated to run for 6 months. The scheme will now work on the following basis:

  • To qualify, employees must be working for at least 20% (previously a third) of their normal hours and be fully paid by employers for those hours. The scheme will cover 62% of the normal contracted hours which are not worked, and the employer must pay for just 5% of the hours not worked.
  • This more than doubles the maximum payment per employee by the government to £1,541.75 per month
  • As before, all small and medium sized businesses will be eligible, larger businesses will only be eligible where their turnover has fallen through the crisis.
  • The scheme remains available to employers across UK, even if they have not previously used the current furlough scheme. Furthermore, use of the new scheme will not disqualify businesses from participating in the Job Retention Bonus for employees remaining employed after 31 January 2021.

It is hoped that these changes will save more businesses from falling into administration as a result of the impact of Covid-19 on their trade.

We expect more detailed guidance in the coming days, and HMRC are likely to run various online webinars to help employers and agents to get ready for the scheme. However please contact us if you require any assistance in understanding if and how it will apply to your business. Contact James Geary on 01242 776000 or email