Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

CoronavirusLatest NewsEconomics, government & businessRetailJob creation and losses

Chancellor revamps Job Support Scheme

by Adam McCulloch 22 Oct 2020
by Adam McCulloch 22 Oct 2020 Mark Thomas/Shutterstock
Mark Thomas/Shutterstock

Chancellor Rishi Sunak has announced an update to the UK-wide Job Support Scheme (JSS), including for workers in England where tier 2 restrictions apply.

Instead of a minimum requirement of paying 55% of wages for a third of hours, as announced last month at the launch of the Winter Economic Plan, employers will have to pay for a minimum of 20% of usual hours worked, and 5% of hours not worked.

The government will now fund 62% of the wages for hours not worked. This more than doubles the maximum payment to £1,541.75. In the most generous case, the state will now go from funding 22% of wages to just under half.

Although the aim of the change was to close the gap in support for businesses in tier 2 areas, the revamped support scheme is available across the UK.

Impact of Covid-19 on hospitality

London restrictions risk quarter of a million hospitality jobs

Liverpool launches wage ‘top up’ scheme for hospitality and leisure

Largest annual rise in redundancies since 2009

Hospitality job losses will be ‘far higher’ than expected

The chancellor also announced additional funding to support cash grants for struggling firms of up to £2,100 per month, mainly for businesses in the hospitality, accommodation and leisure sector.

He said the grants would be available retrospectively for firms in areas that have been under tighter controls.

The Treasury said the value of the grants, when added to support for local authorities moving into tier 3, would be worth more than £1bn and could benefit 150,000 firms in England, including hotels, restaurants and B&Bs that aren’t legally required to close.

The JSS replaces the furlough scheme from November.

In tier 3 areas, workers at organisations that have been ordered to shut receive emergency support.

Unions and business groups had said that many companies would not be able to use the JSS as it was and would have to make workers redundant instead.

Areas in tier 2 include London, Essex, much of the West Midlands, Leicester, Nottinghamshire, Cheshire, West Yorkshire and north-east England. Further regions are expected to be added in the coming days.

The hospitality and leisure sectors had labelled the restrictions the “worst of all worlds” because they remove demand without so far being accompanied by additional government support.

Trade association UK Hospitality said going into tier two would put up to 250,000 jobs at risk in London alone. Chief executive Kate Nicholls said it would be “absolutely catastrophic” for the industry without further support.

“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,” Sunak said.

Shadow chancellor Anneliese Dodds criticised the government for what she said was a “patchwork of poor ideas, rushed out at the last minute”.

She said its approach to support for areas entering tier three had been shambolic.

In other political reaction, Greater Manchester mayor Andy Burnham tweeted that the new measures had not been “put on the table” during negotiations with the government this week that failed to agree a £65m package of support. “Why on earth was this not put on the table on Tuesday to reach an agreement with us?”

These changes mean that our support will reach many more people and protect many more jobs” – Rishi Sunak, chancellor

“Honestly, can barely believe what I’m reading here,” he said.

Against the backdrop of consternation over why the changes weren’t made earlier, employers welcomed the revamped scheme. Julian Cox, partner and employment law specialist, law firm BLM, said: “These changes are going to very helpful for many tier two businesses facing a reduction in footfall, particularly the hospitality sector, as it effectively means employees can work less hours and receive greater government support, with far less of a contribution required from employers.

“For those businesses, in any tier, considering applying to the job protection scheme, a thorough review of where hours can be reduced is vital. Changes to contractual hours could prove a minefield, and employers must make sure their teams are clear on the new ways of working.

However, said Cox, the scheme was “simply not as generous as the original furlough scheme” and with this winding to a close at the end of the month, “redundancies seem inevitable”.  He added: “There will be businesses that simply cannot afford to make these contributions.”

For those businesses, in any tier, considering applying to the job protection scheme, a thorough review of where hours can be reduced is vital. Changes to contractual hours could prove a minefield, and employers must make sure their teams are clear on the new ways of working” – Julian Cox, employment law specialist, BLM

Neil Carberry, chief executive of the Recruitment and Employment Confederation said the REC was disappointed by the “failure to address problems caused to the suppliers to hospitality and leisure businesses by the fall in demand. Staffing firms in hospitality will be crucial to the sector’s recovery and need support too”.

“More can be done to protect jobs. Lowering the cost of labour by reducing employers National Insurance contributions will help boost hiring and keep people in work. Delivering on effective test, track and trace system is absolutely essential to helping our economy recover – and businesses are looking to government to deliver on this.”

Jonathan Geldart, director general of the Institute of Directors, said: “A substantial reduction in the employer contribution is a crucial step, reflecting our members’ concerns. Taking a national approach will help to cut through the confusion of different tiering systems and backroom political negotiations.

But he pinpointed what he called a “glaring gap”: “The exclusion of small company directors, a major part of the dynamic entrepreneurial heart of our economy, from key support schemes becomes all the more pressing as the virus wears on. It’s deeply frustrating that this issue still hasn’t been addressed.”>

Latest HR job opportunities on Personnel Today

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Browse more human resources jobs

 

Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

previous post
WEF: Half of all work tasks to be automated
next post
Personnel Today Awards 2020: Excellence in Public Service shortlist

1 comment

PAUL BARKER 22 Oct 2020 - 2:48 pm

Is the government cap changing in proportion to this? Also is there clarification on the treatment of holidays and working hours given we have Christmas and Easter in the 6 month period…?

Comments are closed.

You may also like

Restaurant tips should be included in holiday pay

21 May 2025

Fewer workers would comply with a return-to-office mandate

21 May 2025

Redefining leadership: From competence to inclusion

21 May 2025

Pay awards in real terms could fall for...

21 May 2025

Ryanair demands flight attendants pay back salary increase

21 May 2025

Consultation launched after Supreme Court ‘sex’ ruling

20 May 2025

Uncertainty over law hampering legal use of medical...

20 May 2025

Black security manager awarded £360k after decade of...

20 May 2025

Employers ‘worryingly’ ignorant about stress risk assessments

20 May 2025

UK and EU agree to collaborate on ‘youth...

19 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+