Job Support Scheme & Support for the Self-Employed
The Coronavirus Job Retention Scheme (CJRS) will draw to a close on 31 October 2020 and will be replaced with a new Job Support Scheme (JSS). This will be introduced from 1 November and will run for 6 months, in order to protect viable jobs in businesses who are facing lower demand over the winter months due to coronavirus.
The government has announced details of the new Job Support Scheme (JSS), which will succeed the CJRS.
- From 1 November 2020, the Chancellor has announced the Government’s plans to subsidise the pay of employees working fewer hours due to lower demand.
- This scheme will be available for businesses with staff working one-third of their normal working hours.
- The JSS will run for 6 months, until the end of April 2021.
- The Chancellor said that the Scheme will be open to all small and medium-sized businesses, but larger businesses will only qualify when their turnover has fallen as a result of the Pandemic.
- In order to support only viable jobs, employees must be working at least 33% of their usual hours. The level of grant will be calculated based on the employee’s usual salary, capped at £697.92 per month.
- In addition, the Government is continuing its support for millions of self-employed individuals by extending the Self Employment Income Support Scheme Grant (SEISS). An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to actively trade but face reduced demand due to coronavirus. The initial lump sum will cover three months’ worth of profits for the period from November to the end of January next year. This is worth 20% of average monthly profits, up to a total of £1,875.
More information on the Job Support Scheme can be found here.