The Chancellor has announced a new 6-month Job Support Scheme to help businesses and employees survive the winter months. We are still awaiting full details of the scheme that will replace the current “flexible furlough” scheme but the main features are as follows:
- Employers of all sizes will be eligible for the new scheme, but large organisations will need to demonstrate that their turnover is reduced as a result of COVID-19.
- Eligible employees will be those on the PAYE payroll at 23 September 2020 that are working for at least 33% of their usual hours.
- The employee will be entitled to 2/3 of their usual pay for hours not worked and the Government will pay a grant of 1/3 of usual pay for hours not worked. The maximum grant will be £687.92 a month.
For example, an employee whose usual pay is £450 a week who works 2 days a week would be paid £180 for the 2 days worked and £180 for the other 3 days. The employer could claim a grant of £90 from the Government.
Find out more about the Chancellor’s Winter Economy Plan – Key points for SMEs
If you require any assistance, please contact your usual Beavis Morgan Client Partner or email info@beavismorgan.com.
For further information about the Government measures to protect individuals and businesses, visit our COVID-19: Support for UK businesses hub.