News 24 September 2020

Furlough To Be Replaced By Emergency Job Support Scheme

24 September 2020

Chancellor Rishi Sunak has revealed that the furlough scheme will now be replaced with The Jobs Support Scheme.

The Jobs Support Scheme will enable workers, who have been unable to work in their full time hours due to the coronavirus, to receive at least 77% of their normal wages for six months.

The furlough scheme allowed employers to claim up to 80% from the government of the wages of their staff that were put on leave so they could still be paid.

However, The Jobs Support Scheme will support workers who are in “viable” jobs and are working at least a third of their normal hours. 

Employers will pay the staff for the hours that they do work, whilst both the employer and government will pay for the hours that the staff didn’t work due to the lower demand. The support will be capped at £697.92 a month.

This is to reduce loss of jobs and support employees who have been put on reduced hours.

Chancellor Rishi Sunak said, “The Job support Scheme will directly support the wages of people in work, giving businesses who face depressed winter demand, the option of keeping employees in a job on shorter hours, rather than making them redundant.

“The primary goal of our economic policy remains unchanged – to support people’s jobs – the way we achieve that must evolve.

“I cannot save every business, I cannot save every job.” 

The businesses eligible for the scheme will be small and medium, whilst the large businesses must have a fallen turnover due to the pandemic to be allowed for The Jobs Support Scheme. Employers can use the scheme even if they have not used the furlough scheme before.

The Jobs Support Scheme, which is part of Mr Sunak’s “winter economy plan”, will begin on the 1st of November.