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An update on the Job Support Scheme

Posted by Davenport Solicitors Team on October 12, 2020 in Employment Law

What is the Job Support Scheme?

The Job Support Scheme is a new scheme, announced by the chancellor, following the end of the government’s Furlough Scheme at the end of October 2020. The Scheme was announced to act as a wage subsidy for employees in ‘viable’ jobs who have not been offered their full working hours by their employer.

What is covered in the update?

Following the chancellor’s update to the Job Support Scheme, on Friday 9 October, two-thirds of the wages of workers in businesses forced to close by local and national lockdowns will be covered by the government.

The Scheme (and this update) will remain in place for six months, with a review period in January 2021.

If a business is subject to the restrictions and employees have been off work for a period of seven days or more they are eligible. Eligible businesses can claim 67% of an employees’ salary, up to £2,100 per month. They will not need to contribute towards wages and only asked to cover National Insurance contributions and pension contributions.

Employees must have been on a Real Time Information (RTI) submission to HMRC on or before 23 September.

The government intends for those employed by business conferences, exhibition centres, and sports stadia unable to reopen will be covered by the expanded scheme, with further details to be set out soon, it is understood.

The material contained on this website contains general information only and does not constitute legal or other professional advice and should not be relied upon as such. While every care has been taken in the preparation of the information on this site, readers are advised to seek specific legal advice in relation to any decision or course of action.

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