The Chancellor, Rishi Sunak, has set out the government’s new job retention measures in a statement to the House of Commons.
The furlough scheme will come to an end, as planned, on 31 October 2020. The government says it cannot keep jobs open only inside the furlough scheme – it cannot save every job. Now support is needed to bring people back to work.
The new Jobs Support Scheme involves the government supporting the wages of people in work, giving employers the option to keep people in work on shorter hours, rather than make them redundant.
Employees will have to work at least one-third of their normal hours, and be paid for that by the employer. The government will then top up pay to two-thirds of salary. (The verbal statement in the House made no mention of any maximum payments; doubtless that will be made clear in due course).
All SMEs are elgibile, and larger businesses will be eligible if, but only if, their turnover has fallen through the Covid crisis.
The new Scheme is open to all employees, even if they were not previously used furlough. Please note employers taking up the jobs support scheme will not be able to make employees redundant who are in receipt of this allowance a change from the existing furlough scheme.
The Scheme will run for six months from November.
The self-employed grant is being extended on similar terms and conditions to the new Jobs Support Scheme.
there is yet no detail to back this up it needs to be in place by end of next month when the scheme
There were other announcements concerning loans and so support for the self employed.
Finally the reduced VAT rate of 5% will stay until March 31st 2021 for the hospitality Industries