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What is the Jobs Support Scheme and how does it work?

24 September 2020, 12:23 | Updated: 24 September 2020, 13:31

Rishi Sunak announces Jobs Support Scheme

Jobs Support Scheme: What is it and who can claim? Here's what Rishi Sunak said in his speech...

Rishi Sunak announced the government's new plans to keep people in work on Thursday.

Appearing at the House of Commons, the Chancellor admitted the damage to the UK economy caused by the pandemic is 'deeper than previously thought'.

He told MPs he 'cannot save every job and every business"' but revealed details of the new Jobs Support Scheme which will replace the Furlough system.

So what is the new Jobs Support Scheme and who is eligible?

What is the Jobs Support Scheme and how does it work?

The new Jobs Support Scheme will give businesses the chance to reduce staff working hours rather than making them redundant, with the government subsidising wages.

Rishi Sunak announced his new scheme. Picture: PA Images

Employers will continue to pay staff for hours that they work, but for the hours they've not worked the government and employer will both pay one third of their equivalent salary.

It means workers will be paid two thirds of their salary for the hours they can't work.

In total, someone on the scheme will receive 77% of their total pay, with the Government's support capped at £697.92 per month.

It sets out to ‘support viable jobs’, so employees must be working at least a third of their contracted hours and be paid for those hours in full by their employer.

The scheme will run for six months from November to April.

Who can apply for the Jobs Support Scheme?

Anyone who as of yesterday (September 23) is employed is eligible.

It is set to target all small and medium sized businesses, but larger businesses can also apply when their turnover has fallen.

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Businesses are eligible even if they haven't used the furlough scheme.

Employers retaining furloughed staff on shorter hours can claim both the Jobs Support Scheme and the Jobs Retention Bonus.

The Chancellor also announced the extension of the self employed grant on similar conditions as the jobs support scheme.

Mr Sunak said: “The economy needs a more permanent adaption to the Furlough scheme, our plan needs to adapt and evolve.

“It is wrong to hold people in jobs that only exist in furlough, we want to create new opportunities and provide genuine security.”

He continued: “I cannot save every business, I cannot save every job, but I want to deal with the real problems businesses and employees are facing now.”

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