September 25, 2020

The New Job Support Scheme: Explained

On 24th September, Chancellor Rishi Sunak revealed his Winter Economy Plan to help Britain’s workforce as the effects of the COVID-19 pandemic continue.

He announced a new package of support called the Job Support Scheme. It will be made available to employers who continue to need support after the Job Retention Scheme ends on 31st October.

So, what is the Job Support Scheme? Which employees can be part of it? And how is the scheme actioned through the payroll? Keep reading to find out.

You can also sign up to our live webinar where our experts will explain the new scheme in more detail and answer your questions in a live Q&A.

What is the New Job Support Scheme?

The Job Support Scheme opens on 1st November and will run for six months until 30th April 2021.

Here’s how the scheme works:

  • The employer will pay the employee for any hours worked based on their normal contracted wage.
  • The hours not worked (based on the employees’ ‘usual’ hours) will be supported by the government paying one third (up to a cap of £697.92 per month) and the employer paying one third.
  • There is no requirement for the employer to have previously used the Job Retention Scheme to be eligible to use this new scheme.
  • Employees cannot be made redundant or put on notice of redundancy during the period the employer is claiming the grant for that employee.

Which Employees can be Part of the Scheme?

  • Employees must have been on the payroll on or before 23rd September 2020 (and reported on the RTI submission).
  • The employee must work at least 33% of their usual hours for the first three months of the scheme.
  • Employees do not have to have the same working pattern each month, but each short time arrangement must cover a minimum period of seven days.

Reimbursement from the Government

  • Payments will be made in arrears.
  • The grant will not cover class 1 employers NICs or pension contributions – however, these are still payable by the employer.
  • Online claims can be made from December 2020 and will be paid on a monthly basis.

How Does the New Scheme Impact Payroll?

HMRC have shared a fact sheet here that includes initial guidance for employers. To understand how this new scheme will be actioned through the payroll, we need to wait for additional, technical guidance to be provided by the HMRC.

What Does this Mean for Moorepay Customers?

Our product team and payroll experts are already on the case. When additional guidance is published by the HMRC, we will be able to understand what is achievable within our payroll software. As soon as we can advise customers of what will be available, and when, we will be in touch.

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About the author

Claire Younger

About the author

Claire Younger

With a career in payroll spanning 24 years, Claire is CIPP qualified and has been with Moorepay for 19 years. Claire has enjoyed a wide range of roles in payroll, starting out as as a Trainee Payroll Administrator, and progressing to a Payroll Manager. She's also worked as an Operations Consultant, Offshoring Consultant, Project Manager, Implementation Manager, Partner Enablement Manager, Strategic Account Manager and most recently, a Business Improvement Manager. Claire is passionate about business improvement, client service and working across multiple teams. She often works in a ‘troubleshooting’ role supporting colleagues in operations and implementation with special projects, process improvement and best practice.

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