The Chancellor of the Exchequer Rishi Sunak unveiled the scheme that will replace the Furlough scheme, which comes to an end on the 31 October. The Job Support Scheme will see workers receiving 77% of their pay for working a minimum of 1/3 of their usual hours.
Almost 3 million workers – 12% of the UK’s workforce – are currently on partial or full furlough leave.
Under this new scheme, the government will subsidise the pay of employees who are working fewer hours than normal – it will apply staff who can work at least 1/3 of their usual hours. Employers will pay their staff for the hours they do work and for the hour’s employees cannot work, the government and employer will each cover 1/3 of the lost pay.
The grant will be capped at £697.92 per month.
All small and medium business will be eligible for the scheme, while larger businesses will be eligible if their turnover has fallen during the crisis. Even if employers did not previously use the furlough scheme, employers will still be eligible for this new scheme.
The scheme will run for 6 months starting 01 November.
Under furlough, the government initially paid 80% of a monthly wage up to £2,500 however under this new scheme, it will drop to 22%. Companies who use the Job Support Scheme can still claim the Job Retention Bonus, where the government pays £1,000 for every furloughed employee who comes back to work until at least the end of January.