UK government announces Job Support Scheme as furlough nears end

UK chancellor Rishi Sunak has announced a new Jobs Support Scheme to replace the furlough.

The scheme, which will run for six months starting in November, will only apply to employees working at least a third of their normal hours, for which they will be paid as usual. For every hour not worked by the employee, the government and employer will then pay a third each of the usual hourly wage for that employee. The government contribution will be capped at 697.92 pounds a month.

All small and medium sized businesses are eligible for the scheme, as well as larger businesses whose turnover have fallen through the crisis.

It is open to employers across the UK - even those that didn’t use the furlough scheme.

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

The scheme will replace the coronavirus Jobs Retention Scheme, or furlough scheme, announced in March and set to end at the end of October.

Sunak also said the government is extending the existing self-employed grant on similar terms and conditions as the new Jobs Support Scheme.

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