The government has announced that a new Job Support Scheme will replace the current furlough scheme which ends in October. Under the Job Support Scheme workers will get three-quarters of their salary for 6 months and the scheme will start on 1st November.
New help for the employed
The main points of the Job Support Scheme are:
- It will apply to staff who work at least one-third of their normal hours
- Employers will pay for the hours that staff work
- For the hours the employee can't work the government and the employer will each pay one-third of the lost pay
- The grant will be capped at £697.92 per month
- It will be available for employers even if they did not previously use the furlough scheme
- Available for small and medium-sized business
- Larger business will be eligible if they can show that their turnover has fallen during the crisis
- Companies can still claim the Job Retention Bonus of £1,000 for all employees who return from furlough before the end of January
For full information see the Job Support Scheme factsheet.
New help for the self-employed
The government also announced the extension of the self-employed grant on similar terms to the Job Support Scheme
- A grant is available to those eligible for the Self Employment Income Support Scheme Grant
- This grant will cover three months of profits from November to the end of January
- It will cover 20% of monthly profits up to a total of £1,875
- There will be a second grant to cover the three months to April 2021 but full details have yet to be announced
For full information see the Self-Employment Income Support Scheme grant extension.
It was also announced that businesses that have borrowed money through the government's 'Bounce Back' loan scheme would be given more time to repay the money by using a new Pay as You Grow flexible repayment system. This new repayment system will allow borrowing to be repaid over 10 years rather than the original 6 years together with the option to take payment holidays and interest-only periods if required.