The Chancellor, Rishi Sunak, has announced the Government’s new job retention measures in a statement to the House of Commons.

The new “Job Support Scheme" will replace the CJRS from 1 November 2020 and is set to last for six months. The scheme will top up salaries in firms which can’t support taking employees back full-time. The new scheme has been created to avoid redundancies for those who are forced to work fewer hours.

The Chancellor warned that “only viable” jobs will be supported under the new programme. It provides that employer will continue to pay its employee for time worked, but the burden of hours not worked will be split between the employer and the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.

Workers will have to do at least 33% of their hours. The Government will pay a third of hours not worked, up to a cap of £697.92 per month, with the employer also contributing a third to ensure employees earn a minimum of 77% of their normal wages, where the Government contribution has not been capped. The required hours worked by the employee will be reviewed and may be increased by the Government after three months.

Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.

Importantly, employees must not be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee.

For further details on the scheme, please click here – further guidance is promised by the Government soon. 

What is the job support scheme? How will the job support scheme work? How to apply? – More details to follow.