Rishi Sunak Announces Major Changes To Covid Job Support Scheme
The Covid-19 job support scheme has been given an overhaul by chancellor Rishi Sunak, with employer contributions reduced and the minimum hours requirement also cut.
Speaking in the Commons, Sunak said employer contributions for hours not worked due to coronavirus restrictions will fall to 5%. Workers will only have to work 20% of hours, he said.
The uplift in support from the Treasury means workers can get 73% of their wages for a minimum of 20 hours.
But the measures were described by Labour as a “sticking plaster” for the economy amid fears mass joblessness beckons.
The new JSS support means a typical employee in the hospitality industry paid an average of £1,100 per month will still take home £807, the government said.
Outlining details to MPs, Sunak said: “For businesses who can open it is now clear the impact of restrictions on them particularly in the hospitality sector is more significant than they had hoped.
“So, I am making two changes to the short-time work scheme to make it easier for those businesses to keep staff on rather than make them redundant.
We're making the Open Job Support Scheme more generous to protect jobs during lower demand.
- Government now pays at least 62% for hours not worked
- Employer contribution cut from 33% to 5%
- Employees now take home at least 73% of pay for working a new minimum 20% of hours pic.twitter.com/bSXr0zup6d— Rishi Sunak (@RishiSunak) October 22, 2020
“First, under the original scheme employees had to work for 33% of their normal hours. Now we will ask them to work only 20% of those hours.
“Second, the employer contribution for the hours not worked will not be 33% as originally planned, or even 20% as it is in the October furlough scheme, it will reduce to 5% and the scheme will apply to eligible businesses in all alert levels.”
Sunak also unveiled more backing for the self-employed, with the maximum grant available raised to £3,750.
He added: “I’m increasing our contribution to the...
