Rishi Sunak has announced the Job Support Scheme.
The government will continue to financially support companies in paying the wages of workers who have not been able to return to work full time as a result of Covid with the new Job Support Scheme.
The Job Support Scheme will replace the furlough scheme when it comes to an end on 31st October. The scheme guarantees 77% of a worker’s regular salary and it will last a minimum of six months.
The scheme was announced in a bid to prevent mass job cuts following tougher lockdown restrictions. The Chancellor is says that this move is only one part of a “winter economy plan”. Almost 3 million workers, equivalent to 12% of the UK’s working age population, are currently on partial or full furlough, according to figures from the ONS.
In a statement Rishi Sunak said: “The government will directly support the wages of people in work, giving businesses who face depressed demand the option of keeping employees in a job on shorter hours, rather than making them redundant“.
“The primary goal of our economic policy remains unchanged – to support people’s jobs – but the way we achieve that must evolve. I cannot save every business, I cannot save every job.” he added.
Only viable jobs will be protected under the new scheme, meaning that jobs surviving solely as a result of the furlough scheme presently will no longer be supported. A scheme to support self-employed will be announced shortly. It is estimated that the scheme will cost the government approximately £300 million a month to fund.
The government will subsidize the pay of those worker fewer hours although only those who are working at least a third of normal hours. Employers will have to pay their staff for the hours that they do work. The top-up will be limited to £697.92 per person per month. All small and medium businesses will be able to apply while large businesses can also apply but only if their turnover has taken a hit.
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