Chancellor Makes Changes to the Job Support Scheme (JSS)

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Today (22 October) the Chancellor has announced enhanced support for employers in recognition of the pressures faced by some sectors and areas to lighten the burden of maintaining staff. 

It is hoped that these increased measures will reduce the alternative need for redundancies for those businesses who have seen dramatic drop in demand due to increasing restrictions. 

Original details of the Job Support Scheme (JSS) coming into effect on 1 November 2020, replacing the existing Job Retention Scheme (furlough), required employers to pay 30% of employees’ wages for hours not worked, with employees’ required to be working 33% of their normal hours. 

Today’s announcement includes the following amendments to the JSS:

  • Reduces employer contribution to unworked hours to just 5%
  • Reduced minimum working hours requirement to 20% (meaning those working just one day a week will be eligible)
  • Employers will continue to receive the £1,000 Job Retention Bonus.

The changes to the JSS will apply to businesses across the UK that are able to remain open but experiencing considerable difficulties by increasing the contribution to wage costs under the JSS and reducing business contributions to wages.