Job Support Scheme Updated

The Job Support Scheme (JSS) has been updated to enable different types of support for businesses, providing access to the funding they need, according to their particular situation.

The two different types of Job Support Scheme are:

JSS Open: For businesses that are operating but facing decreased demand; and
JSS Closed: For those businesses that are legally required to close their premises as a direct result of coronavirus restrictions set by one or more of the four Governments of the UK.

What are the key points for JSS Open and JSS Closed?

• The Job Support Scheme opens from 1 November 2020 and runs until 30 April 2021;
• An employer can claim the JSS Open and JSS Closed grant at the same time for different employees. An employer cannot claim for a single employee under both schemes at the same time;
• Employers claiming the JSS may still claim the Job Retention Bonus in respect of the same employee, if they are eligible; and
  HMRC intend to publish names of employers who have used the scheme and employees are able to check if their employer has made a claim relating to them via their Personal Tax Account.

What is the eligibility criteria for JSS Open and JSS Closed?

• All employers with a UK bank account and UK PAYE scheme can claim the grant;
• Neither the employer nor the employee needs to have previously used the Coronavirus Job Retention Scheme (CJRS);
• Employees must be on an employer’s PAYE payroll between 6 April 2019 to 11:59pm on 23 September 2020;
• ​This means an RTI Full Payment Submission notifying payment in respect of that employee must have been made to HMRC at some point from 6 April 2019 up to 11:59pm on 23 September 2020; and
• Fully publicly funded organisations are not expected to use the scheme, as has been the case with the CJRS, but partially publicly funded organisations are eligible, where their private revenues have been disrupted.

How will JSS Open work?

This scheme is designed to provide additional support over the winter months to those businesses that can operate safely but are facing reduced demand. It gives employees the option of keeping their workforce employed, whilst reducing their hours.

• The employer continues to pay the employee for all hours worked;
• The employee must continue to work a minimum of 20% of their usual hours;
• The cost of hours not worked will be split between the employer and the Government;
• For the time not worked, the employee will be paid 66.67% of their usual wage; and
• The scheme ensures that the employee will receive at least 73% of their normal wages, where they earn £3,125 a month or less.

How much will the Government contribute?

• For every hour not worked by the employee, the Government will fund 61.67% of the employee’s Reference Salary, (see the note at the bottom of our Job Support Scheme Factsheet, which can be downloaded below, for details of Reference Salary); and
• This will be up to a maximum of £1,541.75 per month.

How much will the employer contribute?

• Employers must pay employees their contracted wages for hours worked;
• Employers must pay 5% of Reference Salary for the hours not worked;
• This will be up to a maximum of £125 per month;
  It is at the employer’s discretion to top up the employee’s salary above this rate; and
• National Insurance contributions (NICs) and pension contributions remain payable by the employer.

Who can claim JSS Open?

• Employers will be able to claim if they have enrolled for PAYE online;
• Some or all of their employees must be working reduced hours; and
• Employers with less than 250 employees on 23 September 2020 are eligible to apply.

What is the eligibility criteria for employers with more than 250 employees?

• Employers with more than 250 employees on 23 September 2020 are required to take a Financial Impact Test to evidence their income has remained equal or has decreased compared to the previous year, click here for further details on carrying out a Financial Impact Test for large employers;
• There will be no Financial Impact Test for small and medium enterprises (SMEs); and
• Any charity with 250 or more employees that is registered with a UK charity regulator or are exempt from such registration will not be required to carry out the Financial Impact Test and are eligible for this scheme.

How will JSS Closed work?

JSS Closed is for those businesses that have been legally required to close as a direct result of coronavirus restrictions. It will support the wage costs of employees who are instructed to cease work in eligible (closed) premises.

• Each employee who cannot work as a result of coronavirus restrictions will continue to receive two thirds of their usual wage.

How much will the Government contribute?

• The Government will fund two thirds of an employee’s normal wage cost; and
• This will be up to a maximum of £2,083.33 per month.

How much will the employer contribute?

• The employer will continue to pay two thirds of the employee’s salary, however;
• This will be fully funded by the Government;
• It is at the employer’s discretion to top up the employee’s salary above this rate; and
• National Insurance contributions (NICs) and pension contributions remain payable by the employer.

Who can claim JSS Closed?

• Employers are only eligible to claim for periods during which the relevant coronavirus restrictions are in place;
• Employers will not be able to claim JSS Closed to cover periods after restrictions have lifted and the business premises is legally allowed to reopen; and
• They may then be able to claim JSS Open if they are eligible.

How will the claims be made for both JSS Open and JSS Closed?

• Employers will be able to claim in arrears from 8 December 2020;
  This will cover salary for pay periods ending and paid in November;
• Subsequent months will follow a similar pattern, with the final claims for April being made from early May;
• Payments will be made after the claim has been approved; and
• Employers must have paid the full amount claimed for an employee’s wages to the employee before each claim is made.

Further guidance on the Job Support Scheme, including details of how to calculate a claim, will be published by the end of October.

Additional details can be found by downloading our factsheet below.