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What happens once furlough ends? Information about the Job Support Scheme

The furlough scheme, which was announced back in March, will end on the 31st of October. Although it is not being extended, it is being replaced by the Job Support Scheme.

How does it work?

The Job Support Scheme will be available if your business is allowed to open but your employees are returning part-time. To qualify, your staff will have to be paid to work at least a third of their hours. For the hours not worked, your business and the government will each pay one-third of the remaining wages.

It’s important to note that the payment for part-time workers will be based on an employee’s normal salary and the government contribution will be capped at £697.92 per month. So, for example, if someone earning £1,500 a month was working half their hours, they’d get £750 normal pay. They would then get £250 extra from you, as their employer, and £250 from the government.

The Job Support Scheme has been expanded to support businesses in paying employees if your business can’t open because of Tier Three (“very high”) Coronavirus restrictions.

Rather than the 80% offered by the furlough scheme, the government will pay 67% of wages for each employee (up to a maximum of £2,100 a month). To be eligible, your staff must be off work for a minimum of seven days and you are not obligated to pay towards their salary.

What else do you need to know?

The Job Support scheme will run for six months before it is reviewed again.

If you have to close because of the new Coronavirus restrictions, you will still be required to pay your employees’ pension contributions and national insurance. In addition to the expansion of the JSS, the government is making the Local Restrictions Support Grant scheme more generous so that businesses in England can receive up to £3,000 per month, and are eligible for payment sooner, after only two weeks of closure rather than three. It’s also important to note that employees can’t be put on notice or made redundant while you’re claiming a Job Support Scheme grant on their behalf.

For more advice and guidance on the Job Support Scheme, please contact us at CWR Chartered Accountants today.