Marketing Manager BrightPay
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Beyond Furlough: New Job Support Scheme Explained

5th Oct 2020
Marketing Manager BrightPay
Columnist
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With the Coronavirus Job Retention Scheme ending on 31st October 2020, a new scheme has been unveiled by Chancellor Rishi Sunak called the Jobs Support Scheme. Employees being paid under this new scheme will receive three quarters of their normal wages (where the government contribution has not been capped) and this scheme will come into effect on 1st November 2020 until April 2021. At present approximately three million employees are fully or partially furloughed under the current furlough scheme. The new scheme is estimated to cost in the region of £300 million. 

The new scheme introduces that the government will subsidise wages for employees who are working less hours than their normal working hours due to lower demand. Employees who are able to work a minimum of one third of their normal working hours are eligible under this scheme. The maximum subsidy that will be available as a grant from the government will be £697.92 per month and this will be paid in arrears. The subsidy will not cover employer NIC or employer pension contributions. Employers will be able to make a claim online through HMRC for this subsidy and claim payments will be made monthly. 

Employers will have to pay employees for the hours their employees work, and for the hours that employees cannot work, the employer and the government will fund two-thirds of the remainder of their salary. Half of this top-up will be from the government in the form of a grant and the other half funded by the employer. For example, if an employee’s normal earnings are £1,000 per month and they work a third of their hours, the employee will receive £333.33 as normal pay. The employer and the government will pay an additional £222.22 each for the employee under this scheme.

Employees must be on the employer’s payroll on or before 23rd September where a RTI submission was sent to HMRC notifying payment for the employee on or before this date. Employees must also work at least 33% of their normal hours for the first three months of the scheme and HMRC will review this after three months. 

Employers who are claiming under the new scheme can still claim the Job Retention Bonus £1,000.00 per employee that was furloughed and comes back to work for the employer until the end of January. 

Employers’ eligibility for the scheme: 

  • All small and medium sized businesses can claim under this scheme 
  • Larger business’ who’s turnover has fallen during the Covid crisis period can claim under the scheme 
  • An employer must have a UK PAYE scheme and a UK bank account 
  • An employer did not have to claim under the Coronavirus Job Retention Scheme in order to claim under this scheme 

To learn more about this and the Job Retention bonus, join our new webinar on 7th October. 

Register now

This webinar covers: 

  • The End of the CJRS 
  • NEW: Job Support Scheme 
  • The Job Retention Bonus Scheme 
  • Redundancies 
  • Working Remotely 
  • How BrightPay Connect can help 

Register now

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