Job Support Scheme

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The current Coronavirus Job Retention Scheme (Flexible Furlough) is ending on 31 October 2020. The scheme will be replaced by the new Job Support Scheme, which is starting on 1 November 2020 and will run for six months to the 30 April 2021.

The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce.

Employers who use this new scheme will still be able to claim the Job Retention Bonus in January 2021, if they continue to meet the eligibility criteria.

The business will continue to pay employees for the hours worked, but the cost of the hours not worked will be split between the employer, the Government and the employee.

The employer will pay 5% of the average hours not worked, the Government will pay 62% of the average hours not worked, via a grant claim, and the employee will effectively waive the remaining 33% of the average hours not worked, as these will not be paid. This will ensure that an employee will continue to earn a minimum of 74% of their normal wages, subject to a Government contribution cap.

Employers’ Eligibility for the Job Support Scheme 

 Employees’ Eligibility for the Job Support Scheme


How To Claim

The scheme will be open from 1 November 2020 to 30 April 2021. Claims can start to be made from early December and will be paid on a monthly basis, in arrears (no claim can be made for a pay period until the related RTI submission has been received by HMRC). Claims will be made through a new Job Support Scheme portal through (no further guidance on how and when registering for the new portal will commence has been released at present).

Example Calculation

Below is an example calculation to demonstrate how the scheme will work;

Beth normally works 5 days a week and earns £350 a week. Her company is suffering reduced sales due to coronavirus. Rather than making Beth redundant, the company puts Beth on the Job Support Scheme, working 2 days a week (40% of her usual hours).

Her employer pays Beth £140 for the days she works.

And for the time she is not working (3 days or 60%, worth £210), she will also earn 2/3, or £140, bringing her total earnings to £280, 80% of her normal wage.

The Government will give a grant worth £130 (62% of hours not worked, equivalent to 37% of her normal wages) to Beth’s employer to support them in keeping Beth’s job.


Hours Employee Worked                             20%       40%       50%       60%       70%

Hours Employee Not Working                    80%       60%       50%       40%       30%

Employee Earnings (% of normal)             74%       80%       84%       87%       90%

Gov’t Grant (% of normal wages)              50%       37%       31%       25%       19%

Employer Cost (% normal wages)              24%       43%       53%       62%       71% 

This is an overview of the current position of the Job Support Scheme. We will update this summary as and when the Government release more detailed guidance.

LH Team