Job Support Scheme

Support provided by Gov UK

What does this involve?

The UK Government increased levels of support offered by the Job Support Scheme on 22 October 2020.  The changes are as follows:

  • open businesses which are experiencing considerable difficulty will be given extra help to keep staff on as the government has increased contribution to wage costs under the Job Support Scheme, and business contributions drop to 5%

The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19. It should help keep their employees attached to the workforce. The scheme will open on 1 November 2020 and run for 6 months.

The company will continue to pay its employee for time worked, but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.

For every hour not worked, the employee will be paid up to two-thirds of their usual salary. The minimum hours required for employees to work is 20%.

The employer contribution for non-worked hours is 5%. 

The government will provide up to 61.67% of wages for hours not worked, up to £1,541.75 per month, with the employer contributing 5% of non-worked hours up to a cap of £125 per month

Example: a typical full-time employee in the hospitality industry is paid an average of £1,100 per month. Under the Jobs Support Scheme for open businesses, they will still take home at least £807 a month. All the employer needs to pay is a total of £283 a month or just £70 a week; the government will pay the rest.

Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.

Employers will be able make their first claim from 8 December 2020, covering salary for pay periods ending and paid in November. Subsequent months will follow a similar pattern, with the final claims for April being made from early May.

Am I eligible?

All employers with a UK bank account and UK PAYE schemes can apply.

Neither the employer nor the employee needs to have previously used the Coronavirus Job Retention Scheme.

The scheme is only available to those whose turnover is lower now than before experiencing difficulties from Covid-19.

What does this cost?

This is a free service.

How long does this take?

The scheme will be open from 1 November 2020 to the end of April 2021.

Employers will be able to make a claim online through the UK Government website from December 2020.

They will be paid on a monthly basis.

Important information

Employees must be on an employer’s PAYE payroll on or before 23 September 2020.

In order to support viable jobs, for the first three months of the scheme, the employee must work at least 20% of their usual hours. Employees must be paid their contracted wage for the time worked.

HMRC will check claims. Payments may be withheld or need to be paid back if a claim is found to be fraudulent or based on incorrect information.

Grants can only be used as reimbursement for wage costs actually incurred.

Next steps

Read the Job Support Factsheet (PDF, 104KB, 5 pages) or visit the UK Government website for full details.

Support provided by Gov UK

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