Chancellor introduces Job Support Scheme as part of coronavirus 'winter plan'

To help steer businesses and employees through a tough winter and avoid the much-feared ‘cliff-edge’ as the furlough scheme comes to an end, today Chancellor Rishi Sunak has introduced a range of business support measures.

(Read the latest about the Coronavirus Job Retention Scheme, also known as furlough).

The furlough scheme will reach an end on 31 October as expected, but the Job Support Scheme will step in to offer a helping hand for employers and employees. This scheme will run from 1 November to 30 April next year.

The aim of the scheme is to protect ‘viable jobs’; enabling employers to keep staff in a job albeit for shorter hours, in the hope of reducing redundancies.

While larger businesses will only qualify for the scheme if they can show a reduction in turnover during the coronavirus crisis, all small and medium businesses will be eligible to benefit.

Employees will have to work at least a third of their usual hours (33%) to qualify. Employers will pay for the hours their employees have worked, an additional 1/3 of the remaining ‘usual’ hours that are not worked, with the Government putting in a further 1/3 of the hours not worked. A cap to the Government’s support will apply, at £697.92 per month.

Importantly, the Job Support Scheme is open to all employees – not just those who were previously furloughed.

As a practical example, if an employee works 33% of their usual hours, they will receive 77% pay in total (the combined contribution from their employer and the Government).

What will the Job Support Scheme mean for employers?

Employers who were considering the prospect of making employees redundant due to reduced demand, will doubtless welcome the news of the scheme. However, while it may reduce the need for redundancies in some cases, it will not be able to help everyone; the scheme is only designed to maintain ‘viable’ jobs. Where employees can’t work at least a third of their normal hours, redundancies may still be needed.