Chancellor drops JSS employer contributions to 5%

In recognition of the challenging times ahead, the chancellor, Rishi Sunak, said: “I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today. These changes mean that our support will reach many more people and protect many more jobs.

“I know that the introduction of further restrictions has left many people worried for themselves, their families and communities. I hope the government’s stepped-up support can be part of the country pulling together in the coming months.”

When originally announced, the JSS saw employers paying a third of their employees’ wages for hours not worked, and required employers to be working 33 percent of their normal hours.

Today’s announcement reduces the employer contribution to those unworked hours to just five percent, and reduces the minimum hours requirements to 20 percent, so those working just one day a week will be eligible.

For every hour not worked, the employee will be paid up to two-thirds of their usual salary.

The government will provide up to 61.67 percent of wages for hours not worked, up to £1541.75 per month (more than doubling the maximum payment of £697.92 under the previous rules). The cap is set above median earnings for employees in August, at a reference salary of £3,125 per month.

That means that if someone was being paid £587 for their unworked hours, the government would be contributing £543 and their employer only £44.

However, for businesses in tier three areas - those under very high alert - the government announced it will cover the full cost of employers paying two-thirds of people’s salaries where they cannot work for a week or more.