October 22, 2020
Authored by: Mark Kaye and Rebecca Harding-Hill
We previously reported on the establishment of the Job Support Scheme (“JSS”). The Chancellor of the Exchequer has, today, made a further announcement setting out significant changes to the JSS . These changes are primarily aimed at providing support to businesses in Tier 2 which are not legally required to shut their premises as part of further lockdown measures, but which are suffering a significant decline in revenue. However, the changes go even further than this.
Key details of the changes
The key details of the changes to scheme, which will apply to all of the UK, are as follows:
- The JSS will apply to all businesses in every alert level (i.e. Tiers 1, 2 and 3).
- Employees only need to work at least 20% of their normally working hours and be paid by their employer for those hours (not at least 33% of their normal working hours as originally required when the JSS was first announced).
- Under the initial JSS announcement, for the hours not worked, the government and the employer were each required to pay one third of an employee’s salary. Following today’s announcement, the employer contribution will be reduced to just 5%.
- The government will provide up to 61.67% of wages for hours not worked, up to £1,541.75 per month (more than doubling the maximum payment of £697.92 under the previous rules when the JSS was first announced).
In addition, the government is increasing support for self-employed individuals and implementing a new grant scheme