PUB staff and nursery workers are just some of the roles that could benefit from the new Jobs Support Scheme.
Chancellor Rishi Sunak announced the new financial support as a replacement of the furlough scheme, which is due to end on October 31.
The Jobs Support Scheme will help support employees who have gone back to work, but under reduced hours.
Employees must be working at least a third of their contracted hours – and be paid in full for these hours by their employer.
For the hours they've not worked, the government and employer will each pay one third of their salary.
It means employees can be paid 77% of their salary by working 33% of their hours.
What is Rishi Sunak’s Job Support Scheme, who is eligible and how do I apply?
- To be eligible, employees must be working at least a third of their contracted hours and be paid for those hours in full by their employer.
- For the two thirds of the other hours not worked, the Government will pay a third – so 22 per cent of their overall wages.
- The employer will have to pay the other third of it. It means with the third they are already paying, they will have to fork out 55 per cent of the total wages.
- The scheme will start on November 1 – the day after the other furlough scheme ends.
- It's open to all small and medium sized businesses, even if they didn't use the furlough scheme beforehand.
- The Jobs Support Scheme will only help those on the PAYE pay roll. Self-employed workers have been given more time to pay their tax bill and extra grant help.
- It's likely that employees won't have to apply – and the employers will do the work for them.
- Employers were previously able to claim back the wages from the HMRC portal.
Broken down, the government will pay 22% of these wages, while the employer will fork out 55%.
Employees will then lose one third of their wages when they don't work.
The Chancellor had come under pressure to extend furlough amid fears hundreds of thousands of jobs could be lost when the scheme closes.
But which industries are likely to benefit most from the new Jobs Support Scheme?
The new jobs programme will only provide support for employees who are able to work one third of their hours – so if a business is currently unable to operate, they won't be able to make use of the scheme.
We spoke to HR experts and employment unions to get their thoughts.
Pub and restaurant workers
Most pubs and restaurants are operating under reduced hours after the government introduced a new 10pm curfew for the hospitality industry.
Businesses, particularly small boozers and diners with little space, are also running limited staff rotas to minimise contact between workers.
So these types of jobs – where staff can work, but not full-time – could benefit from the Jobs Support Scheme, Gordon Thrower, senior employment taxes manager at MHA MacIntyre Hudson, told The Sun.
The hospitality industry has been hard hit during the coronavirus pandemic, with thousands of job cuts already announced by big chains including Costa Coffee, Pizza Hut and Pret.
It comes after most dine-in businesses temporarily shut for three months when the UK went into lockdown on March 20.
Mr Thrower said: "The aim of the new job support scheme is to support viable jobs, including jobs that can be done at least on a part-time basis.
"Businesses likely to benefit are those still able to function on a reduced hours basis, for example pubs and restaurants operating on reduced opening hours."
Restaurant and food chain job losses
A NUMBER of high-profile restaurant and food chains have announced job cuts following the coronavirus crisis.
- Zizzi owner Azzurri Group announced in July 2020 that it would permanently shut 75 branches, putting 1,200 jobs at risk
- Frankie & Benny's owner The Restaurant Group has proposed closing 125 branches, with 3,000 jobs on the line
- Byron Burger is shutting 31 restaurants, around half of its UK sites, with 600 jobs at risk
- Bella Italia and Cafe Rouge have announced the closure of 91 restaurants, with 1,900 jobs to go
- Pret a Manger is cutting 2,800 jobs with 30 stores to close
- Costa Coffee is axing 1,650 jobs – it hasn't announced any store closures at this stage
- Upper Crust plans to make 5,000 out of its 9,000-strong workforce redundant
- Carluccio’s is cutting 1,000 jobs with 40 restaurants to shut
- Pizza Express has confirmed it'll be closing 73 restaurants, putting 1,100 jobs at risk
As businesses have to be open in the first place to access the Jobs Support Scheme, some high street retailers may be eligible for the financial help.
Again, this would only be the case if their staff are working under reduced hours and with less workers on shifts.
However, the retail industry could still face trouble ahead if tighter coronavirus restrictions are brought in, meaning less shoppers spending money.
More than 430,000 jobs have been lost as a result of the pandemic, mainly in the retail and travel industries.
Mr Thrower continued: "The sector will suffer because of a slump in demand. However, while shops can still open and have people working part-time they will be able to take advantage of the scheme."
The National Day Nurseries Association (NDNA) says the jobs plan from the Chancellor will provide "much needed support" for early years employers.
The industry is facing less demand due to more people working from home, meaning they'll be able to top up the wages of staff who can't work full time.
Purnima Tanuku OBE, chief executive of NDNA, said: “Childcare remains a vital part of any plans for economic recovery so providers experiencing lower demand and increased operating costs need support from the Government to remain viable.
"This will ensure that childcare places are available when parents need to work, enhance their skills or retrain."
Factory bosses who've reduced their workforce may be able to start bringing in more staff thanks to the Jobs Support Scheme.
In particular, the aerospace, steel and automotive industries are sectors which trade union Unite UK believes could benefit.
Unite the Union leader Len McCluskey said: "There can be no doubt that in the UK's strategically vital industries, today’s move to support wages means we stand a better chance of saving the jobs and skills needed to power the recovery."
However, manufacturers' organisation Make UK argued that demand remains low in the industry and said it wouldn't be surprised if firms still refuse to bring workers back, even part-time.
Stephen Phipson, chief executive of Make UK, said: "We must recognise that there are some sectors of manufacturing where there is still not enough demand to even drive part time work.
"These are viable, often world leading firms, facing a sustained but temporary absence of demand."
Small business owners
Small businesses who have limited cash reserves could also benefit from the Jobs Support Scheme – but again, only if they're able to trade in the first place.
Peter Meyler, head of HR analytics and consulting at Barnett Waddingham, told The Sun that the cash boost could help bridge the financial gap while coronavirus restrictions remain in place.
He said: "This support helps them and their employees through a prolonged period of economic uncertainty.
"But it only applies where an employee is working a third of their normal contracted hours. This therefore doesn’t help where some employees have been furloughed since the beginning of the pandemic.”
Which businesses won't benefit?
Staff in the entertainment industry are unlikely to be eligible for the Jobs Support Scheme, given most music and theatre venues remain shut.
This includes nightclubs, which are currently shut across the UK due to the 10pm curfew.
The travel and tourism sector also continues to be under threat due to ongoing holiday restrictions and less Brits going abroad.
Simon McVicker, director of policy, public affairs and communications at BackinBusiness, said: "You have to be working at least 33% of your normal hours, which could be a high benchmark for those in the struggling sectors.
"The Chancellor said the scheme would initially be for six months, which may also not be enough."
The Job Support Scheme will only help those on the PAYE pay roll – for self-employed workers the government has extended its self-employed income support scheme (SEISS).
Self-employed workers have also been given more time to pay their tax bill.
See all the previous furlough changes here, including everything that's different since the start of the scheme in March.
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