Jobs Support Scheme announced

The Chancellor, Rishi Sunak, today announces a new Jobs Support Scheme, which will replace the Coronavirus Job Retention Scheme (Furlough Scheme) when it comes to an end on 31 October 2020.  The new scheme will support short time working by providing government money to employers where staff hours are reduced to no less than one third of their existing standard hours. The existing grant for self-employed people is also being extended.

In summary, the UK Government will top up workers’ salaries to cover at least 77% of their wages, so long as they fulfil at least a third of their existing hours and the employer matches their contribution.  The scheme is due to start on 1 November 2020 and will run for six months.

The employer’s cost has therefore increased from the outset of furlough when it was 20% to 55%, but at least now some value is gained by the necessity of some work being performed.

Further details on the Jobs Support Scheme will become available shortly, including eligible businesses and associated conditions. If you have any questions or concerns about how this might affect you as an employer or employee, please contact the team at Barker Gotelee to discuss.

Dermott Thomas is a partner and specialist litigator/advocate at Barker Gotelee, Ipswich employment law solicitors

For more information on our range of legal services including employment law, please call the team on 01473 611211 or email