The UK’s revised Job Support Scheme was announced by Rishi Sunak, the Chancellor of the Exchequer on the 22nd October 2020.
The amended Job Support Scheme (JSS), which replaces the Coronavirus Job Retention Scheme (CJRS), helps both employers that have been legally required to close their premises as a direct result of coronavirus restrictions, and also those employers in England’s local Covid alert tiers 1 and 2 if their business is facing a fall in demand due to Covid-19 but who can still legally open for business.
The JSS is available across the UK, but Wales, Scotland and Northern Ireland may offer other forms of support. JSS will be open from 1 November 2020 and run for 6 months, until 30 April 2021, but the government will review the scheme in January.
Job Support Scheme Open (JSS Open) – how it works
From 1 November, the employee will need to work a minimum of 20% of their usual hours. They will be paid by their employer as normal for the hours worked.
The employer will pay 5% of salary for the hours not worked, up to a maximum of £125 per month, although they can pay more than this if they wish. The employer will also pay national insurance
The government will pay the remainder of 61.67%, of salary for the hours not worked, up to a maximum of £1,541.75 per month. This means employees continue to receive at least 73% of their normal wages, where they earn £37,500 per year or less.
Job Support Scheme Closed (JSS Closed) – how it works
From 1 November, for employers that have been legally required to close their premises as a direct result of coronavirus restrictions set by one or more of the four governments of the UK, can apply for grants under JSS Closed. JSS Closed will support the wage costs of employees who have been instructed to cease work in “eligible premises”. This is regardless of whether the employee has been furloughed previously under CJRS.
Each employee who cannot work due to these restrictions will receive two thirds of their normal pay, paid by their employer and fully funded by the government, to a maximum of £2,083.33 per month, although the employer can pay more than this if they wish.
In essence, JSS Closed is a less generous form of the furlough of the CJRS, with the government providing grants to cover 67% of wages (80% under CJRS), while employees take a 33% hit (instead of 20% in CJRS).
Claiming and Paying JSS
For both JSS Open and the JSS Closed schemes the employer pays national insurance and pension contributions on the full amount. Any student loan deductions and the apprenticeship levy must also still be paid. Also for both Open and Closed, there must be a written agreement between the employer and the employee regarding the changes.
Employers claiming the JSS may still claim the CJRS bonus – paid as a reward for keeping previously furloughed staff on their books for three months from 1 November – in respect of the same employee if they are eligible. Grants claimed under the JSS can be used by employers to pay an employee’s wages and help meet the Lower Earnings Limit of the CJRS bonus.
The JSS grants can be claimed in arrears from 8 December 2020. Employers must have paid the full amount claimed for an employee’s wages to the employee before each claim is made. In December, employers will be able to claim for salary for pay periods ending and paid in November. Subsequent months will follow a similar pattern.
