Guide to the New Government Support Scheme for Workers

Guide to the New Government Support Scheme for Workers

 

The Chancellor of the Exchequer, Rishi Sunak has set out plans to help support workers and business through the latest series of Coronavirus restrictions.

In this guide for new government support we’ll outline what that means and show you where, and how, to get help.

What kind of support is the government offering?

The chancellor plans to help preserve jobs with:

  • The Job Support Scheme
  • Additional support for the self-employed

The Job Support Scheme

Mr Sunak has opted to replace furlough with a new system of subsidised support. Under the new scheme, staff who work at least a third of their hours will be eligible for government help.
Guide to the New Government Support Scheme for Workers

How it works

If you’re working fewer hours than normal the government will subsidise your pay. Your employer must also pay you for the hours you do work, and pay a third of the hours you don’t. The government will top up your earnings with another third.

For example, if you’re working half of your hours, your employer must pay 67 percent of your salary. The government will pay an additional 17 percent, which means you’ll take home 83.3  percent of your usual monthly wage.

So, someone on £20,000 per annum who normally works a 37.5 hour week would receive 83.3 percent of their normal wage or £1,247.69 a month.

Will the company I work for be able to access the scheme?

The chancellor has made the scheme available to small and medium-sized companies. Larger businesses may be able to access the scheme if their turnover has been affected by Coronavirus.

Additional support for the self-employed

Mr Sunak has aligned support for the self-employed with the Job Support Scheme. Under the terms of the new deal, self-employed workers can claim a grant that pays 20 percent of their average monthly profits. The figure is capped at £1,875 per month, and the money will cover the period from November to the end of January.

There may be extra support available beyond that depending on individual circumstances.

How to access help and advice

With the crisis set to continue, the government has attempted to shore up the economy with a new plan. But we’re yet to see anything that offers the thousands of people affected by the end of furlough some hope for the future. With the Job Support Scheme, Mr Sunak has, at least, given some vestige of stability to hard-pressed workers. And yet, there are many more who’ll still be catapulted on to the job market because state aid was keeping their jobs afloat.

We represent working people wherever they are and whatever they do. We’re fighting for:

  • more generous terms for people who have been made redundant thanks to COVID-19
  • An increase in the Job Support Scheme to 90 percent of salary where hours worked meet or exceed a third of your standard working week
  • A job creation scheme that meets the realities of the digital age
  • A skills and innovation policy that delivers free training for people who have lost their jobs.

Nobody asked for this crisis and nobody should be punished by a situation beyond their control.

If you’re concerned about your job, your employer is trying to make you redundant without following due process, or you simply need some advice; don’t feel you have to struggle alone. The most powerful form of defence is to join The Workers Union. We will be able to advise you on the legal context and provide further assistance with your case.

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