Workers' Weekly On-Line
Volume 50 Number 37, October 3, 2020 ARCHIVE HOME JBCENTRE SUBSCRIBE

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"Jobs Support Scheme"

In his "Winter Economy Plan" announced on September 24, the Chancellor of the Exchequer said that the new Jobs Support Scheme would replace the furlough scheme, which expires at the end of October.

The new "Jobs Support Scheme" will run for six months, starting in November. Employees will need to work a minimum of a third of their normal hours and be paid for that as normal.

The government and the employer will than share the payment to cover two thirds of the remaining hours.

"Employees working 33% of their hours will receive at least 77% of their pay," HM Treasury stated.

Anyone who was employed as of September 23 is eligible.

Millions of workers are still currently on some form of furlough.

SMEs are automatically eligible for the new scheme, but larger businesses will need to prove their business has been impacted by the pandemic.

Support for the self-employed is also being extended.

Bounceback Loans and Coronavirus Business Interruption Loan Scheme (CBILS) loans are also being extended, allowing firms to "pay as you grow", Sunak said.

A new loan scheme to succeed CBILS will also be announced in the New Year.

The 15% VAT rate cut for tourism and hospitality has been extended until March 31, 2021, while up to 500,000 businesses that deferred VAT payments until March 2021 will be able to split the payment up over 11 months.


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