The Chancellor announced as a part of the ‘Winter Economic Plan’ a new wage subsidy scheme, the Job Support Scheme (JSS), was to be the successor of the Coronavirus Job Retention Scheme (CJRS) when it ends on 31 October.
The JSS will run for six months from 1 November, and aims to maintain employees in ‘viable jobs’, rather than preserve posts which are likely to become redundant when the CJRS ends.
The CJRS was an emergency measure used to protect almost all jobs during lockdown. But now that much of the economy has reopened, the JSS will only support ‘jobs which provide genuine security’ and is only intended to top up salaries for firms which can not yet take employees back full-time.
At the height of the CJRS, the Government paid 80% of workers’ wages but under the new scheme it will pay a maximum of 22%. The JSS is open to all UK based small and medium sized businesses while larger firms will have to complete a financial assessment test to access the scheme.
We have outlined the key differentiators of the CJRS and JSS schemes.
During this time of uncertainty, we can all benefit from increased communication, the sharing of ideas and seeking advice where needed. If you would like to set up a call to discuss the challenges facing your business, please contact a member of the team.
