Job Support Scheme Update

Job Support Scheme – Further updates announced

The government has announced today that it will significantly increase the generosity and reach of its winter support schemes to ensure livelihoods and jobs across the UK continue to be protected in the difficult months to come, supporting jobs and helping to contain the virus: 

• Open businesses that are experiencing considerable difficulty will be given extra help to keep staff on as the government significantly increases contribution to wage costs under the Job Support Scheme, and business contributions drop to 5%.

• Business grants are expanded to cover businesses in particularly affected sectors in high-alert level areas, helping them stay afloat and protecting jobs.

• Grants for the self-employed have now doubled to 40% of previous earnings.

In recognition of the challenging times ahead, the Chancellor said he would be increasing support through the existing Job Support and self-employed schemes, and expanding business grants to support companies in high alert level areas.

This update builds on agreements reached with Local Authorities moving to Alert Level Very High, with extra support for businesses, jobs and the economic recovery.

Chancellor Rishi Sunak said: "I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today. These changes mean that our support will reach many more people and protect many more jobs.

"I know that the introduction of further restrictions has left many people worried for themselves, their families and communities. I hope the government’s stepped-up support can be part of the country pulling together in the coming months."

Job Support Scheme (JSS)

When originally announced, the JSS – which will come into effect on 1st November – saw employers paying a third of their employees’ wages for hours not worked, and required employers to be working 33% of their normal hours.

Today’s announcement reduces the employer contribution to those unworked hours to just 5%, and reduces the minimum hours requirements to 20%, so those working just one day a week will be eligible. That means that if someone was being paid £587 for their unworked hours, the government would be contributing £543 and their employer only £44.

Employers will continue to receive the £1,000 Job Retention Bonus. The Job Support Scheme closed for businesses legally required to close remains unchanged.

These updates offer a very significant improvement in the support available to businesses struggling with the impact of increasing restrictions across the UK. This support package will help thousands of employers that would have otherwise faced catastrophic devastation to their businesses.