Unveiled: The Chancellors Job Support Scheme
The Chancellor has addressed the Commons and unveiled his new Job Support Scheme to help protect jobs and the economy over the winter period.
The Job Support Scheme will start in November and replace the Furlough Scheme that is due to end at the end of October.
The government states the Job Support Scheme will help businesses keep workers’ in viable jobs where there is genuine job security.
It will mean that employees can stay in a job on shorter hours rather than being made redundant and it offers support to sectors that have been severely impacted by the pandemic.
Details of the Chancellors announcement include:
- The new Job Support Scheme will be launched for employees working at least a third of their normal hours and who must be paid for those hours as normal by their employer. The government and employers will jointly increase their wages to cover two-thirds of their lost pay.
- All small and medium-sized businesses are eligible, but larger businesses must show their turnover has fallen during the crisis.
- The Scheme is open to employers across the UK even if they have not previous used the furlough scheme it replaces
- It will run for six months from November
- The existing grant for self-employed people is being extended on similar terms to the Jobs Support Scheme
- Employers can claim both Job Support Scheme and Job retention Bonus
- A “pay as you grow” scheme was announced for businesses, allowing them to extend their bounce back loans from six to 10 years, reducing their payments
- Businesses can also move to interest-only payments or suspend repayments for six months if they are “in real trouble”. Credit ratings will be unaffected
- The government guarantee on Coronavirus Business Interruption Loans will be extended to 10 years and a new successor loan guarantee programme will be announced in January
- The temporary reduction of VAT from 20% to 5% for some sectors will remain in place until 31 March 2021
For full details from the government – click here
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