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New support package announced for businesses in COVID lockdown

Job Support Scheme

Rishi Sunak has just announced some major changes for the Job Support Scheme (JSS) that is due to start in November, increasing aid for businesses and workers hit by COVID restrictions.

The added support comes following increased pressure from those who have been moved into tier 2 restrictions.

Sunak told the Commons that while businesses in tier 2 have not been forced to shut, they are still facing ‘profound economic uncertainty’.

How is the Job Support Scheme changing?

Coming just over one week before the official launch of the JSS, which is the successor to the Job Retention Scheme, The Chancellor has now altered employer contributions.

It was originally outlined that employers would be required to contribute 33% of workers’ usual wages, but this has now been cut to 5%.

Additionally, to be eligible for the scheme, employees had to work 33% of their typical hours but this has also been reduced to 20%.

Sunak stated, “these changes mean more employers can access the scheme, and more jobs will be protected.”

Ultimately, the Government will now pay at least 62% of employees’ hours not worked, which means employees will take home a minimum of 73% of pay for working 20% of their hours.

However, the Treasury did confirm that the support for those businesses forced to close by law will remain the same as before, with the Government paying 67% of employees’ wages and the employer paying nothing.

How can IRIS Cascade help?

With all the recent changes, there is an enormous amount for businesses to grasp, but we’ve launched a Job Support Scheme calculator to help you prepare.

You can click here to access our Job Support Scheme calculator.

Additionally, our HR Solution, IRIS Cascade, offers a wide array of tools to optimise your people processes, including:

  • Timesheets
  • Self-service
  • Integrated payroll
  • And more

For more information on IRIS Cascade and to request a demo, click here.

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