Job Support Scheme (JSS)
The Job Retention Scheme (JRS) will close on 31 October 2020. The Job Support Scheme (JSS) will replace the JRS. Full details about the JSS can be found using this link;
What is the Job Support Scheme - JSS?
The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce.
The business 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),
To enable the employee to keep their job.
The Government will pay a third of hours not worked up to a cap, with the employer also contributing a third. This will ensure employees earn a minimum of 77% of their normal wages, where the Government contribution has not been capped.
Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
The scheme will open on 1 November 2020 and run for 6 months, until April 2021.
Who is eligible?
All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the Coronavirus Job Retention Scheme.
Employees must be on an employer’s PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment to that employee to HMRC must have been made on or before 23 September 2020.
In order to support viable jobs, for the first three months of the scheme the employee must work at least 33% of their usual hours. After 3 months, the Government will consider whether to increase this minimum hours threshold.
Employees will be able to cycle on and off the scheme and do not have to be working the same pattern each month, but each short-time working arrangement must cover a minimum period of seven days.
What does the grant cover?
For every hour not worked by the employee, both the Government and employer will pay a third each of the usual hourly wage for that employee.
The Government contribution will be capped at £697.92 a month.
Grant payments will be made in arrears, reimbursing the employer for the Government’s contribution.
The grant will not cover Class 1 employer NICs or pension contributions, although these contributions will remain payable by the employer.
Beth normally works 5 days a week and earns £350 a week. The company puts Beth on the Job Support Scheme, working 2 days a week (40% of her usual hours).
Her employer pays Beth £140 for the days she works. (£350 /5 x 2)
For the time she is not working (3 days or 60%, 350 / 5 x 3 = £210), she will also earn 2/3, or £140, bringing her total earnings to £280, 80% of her normal wage.
The Government will give a grant worth £70 (1/3 of hours not worked, equivalent to 20% of her normal wages) to Beth’s employer to support them in keeping Beth’s job.
Total cost to the employer = £210 (£140 + £70) - Total cost 60% (£210 / £350)
Hours Employee Worked 33% 40% 50% 60% 70%
Hours Employee Not Working 67% 60% 50% 40% 30%
Employee Earnings (% of normal) 78% 80% 83% 87% 90%
Gov't Grant (% of normal wages) 22% 20% 17% 13% 10%
Employer Cost (% of normal wages) 55% 60% 67% 73% 80%
Extension of the Job Support Scheme (JSS)
This extended support will be available to businesses across the UK that are required to close their premises due to coronavirus restrictions.
Businesses required to close as a result of specific workplace outbreaks by local public health authorities are not eligible to claim under this extended JSS scheme.
Employers will only be able to use the scheme for employees who cannot work (paid or unpaid) for that employer.
What are the additional benefits offered?
- Government will pay two-thirds of employees’ monthly salaries up to a maximum £2,100 per month, per employee.
- Employers will not be required to contribute to wages and will only have to pay any National Insurance and pension costs.
- The scheme will only apply to businesses required to close due to coronavirus restrictions. It will include premises restricted to delivery or collection only services from their premises.
- To claim, employees must be off work for a minimum seven consecutive days.
When will the additional JSS payment be made?
As with the wider JSS scheme, claims for November will be processed in December via an online portal. Subsequent months’ claims will thus be paid one month in arrears.
Cash Grants for business required to close in England
Cash grants to businesses required to close in England are also being increased. These cash grants are to support business owners with fixed costs; those costs payable even if the business is closed.
Grants will be linked to rateable values of business premises and will paid every two weeks. This should provide extra financial support to businesses across the hospitality sector that are required to close due to COVID restrictions.
- Smaller businesses with rateable values at or below £15,000 will be able to claim £1,300 per month.
- Medium-sized businesses with a rateable value between £15,000 and £51,000 will be able to claim £2,000 per month, and
- Larger businesses will be able to claim £3,000 per month.
The devolved administrations in Scotland, Wales and Northern Ireland will be receiving additional financial support to offer similar measures in the devolved areas, should they choose to do so.