The End of Furlough – So what is next?
Undoubtedly Covid-19 has resulted in a major impact on businesses globally which has resulted in companies losing money and ultimately having to work at a reduced task force.
The Furlough Scheme announced by the chancellor was a blessing to a lot of companies around the UK giving them a way to reduce staffing costs to keep businesses afloat and also to keep employees job and still earning a salary.
With Furlough payments ending at the end of October, what does this mean for businesses and employees, and what is next?
Say Hello to the Job Support Scheme:
Immediately following the end of furlough, businesses will be able to access the job support scheme for six months from 1st November 2020. The new scheme is designed for SMEs or larger firms that can prove their revenue has fallen as a result of the coronavirus pandemic. Under the scheme, the government will top up a salary when a business cannot afford to take back an employee full-time.
To be eligible for the scheme, employees must work at least a third of their normal hours and the government and employer will each pay one-third of the remaining wages. The employee must have been on the business’s payroll since 23rd September 2020 and support payments will be capped at £697.92 per month. Employees can be made redundant under the new scheme, and businesses cannot use the money from the scheme to subsidise any redundancy packages.
To find out more about the Jon Support scheme then check out the government website link here https://www.gov.uk/government/publications/job-support-scheme
What additional job support is available?
On 8th July, the government announced the job retention bonus as part of it’s plan for jobs 2020 with a view to improve job retention and boost the economy following the easing of lockdowns across the UK. Under the new scheme, employers receive a one-off payment of £1,000 for each employee they bring back from furlough and employ continuously until January 2021.
Additionally, the UK government plans to offer:
- £1,500 for each 16-24 year old given a 6-month work placement
- £1,500-2,000 for apprentices taken on until the end of January 2021