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Rishi Sunak, the Chancellor of the Exchequer, has made changes to the recently announced Job Support Scheme.
The Job Support Scheme comes into force on November 1 and replaces the Coronavirus Job Retention Scheme, more commonly referred to as furlough.
Under the revised scheme, employers will pay less and staff can work fewer hours before they qualify. At the same time, the tax payer subsidy has doubled.
Instead of a minimum requirement of paying 55% of wages for a third of hours, as announced last month, employers will have to pay for a minimum of 20% of usual hours worked and 5% of hours not worked.
The government will now fund 62% of the wages for hours not worked. This more than doubles the maximum payment to £1,541.75 a month. In the most generous case, the taxpayer will now go from funding 22% of wages to just under half.
The scheme remains open to all small businesses and larger businesses that can show an impact on revenues.
Mr Sunak also announced specific help for hospitality and leisure businesses in tier two areas. English councils will be funded to give monthly grants of up to £2,100 to 150,000 hotels, restaurants and B&Bs. Devolved nations will be given the equivalent funding for other nations, under the Barnett Formula.
The self-employment scheme has also been doubled from 20% to 40% of profits, with a maximum grant now of £3,750 over a three-month period.
