What has the government changed with the new job support scheme?
We’ve changed from normal work to furlough, to Job Retention Scheme and now on to Job Support Scheme in the space of a few months. It’s all a bit confusing. So what’s changed this time around then? How will the government be support you and your company?
The start of November will mark the start of the new Job Support Scheme. If you’ve got any employees on furlough, they can say bye-bye to laying on the sofa all day. They will now have to work for a third of their normal hours every month for the government to help with wages.
Who’s paying what?
So, this is where things can get a little confusing. Your employee works for a third of their normal hours. Now you split their remaining hours into three. One chunk is paid for in full by you. Another chunk is paid for by the government. The final chunk goes unpaid.
This means that your employees will get 77% of their regular pay each month.
To qualify for the new scheme, your business and your employee have to meet a few criteria, outlined here.
What this means for you
This scheme will probably have a very mixed impact on small business owners. On the positive side:
- Small businesses automatically qualify
- The government helps with your employee’s wages
And on the negative side:
- All businesses – big or small, struggling or thriving – have to foot the majority of the bill
- The amount that the government pays has gone down
If you’re a start-up like us, you probably feel very uncertain about the future. Who knows what business will look like in the next few months? We hope that the new Job Retention Scheme will help you stay afloat, even though it’s changed a bit. It’s tough out here.
If you’re looking to give your team more than facts and figures, check out our employee mental health support guide.
If you’re one of the lucky ones with a thriving business, have you thought about spreading the cheer? There are millions of talented juniors out of work, waiting for your company to start hiring again. If you’re looking for your next talented junior hire, sign up to DigitalGrads and advertise your role today.