Job Support Scheme – Government paying more for employees who cannot work

The Job Support Scheme has been changed to increase government support and reduce the amount employers have to pay.

The scheme starts on 1 November 2020. When a business is experiencing difficulty keeping staff on, due to coronavirus, the Job Support Scheme can be used to help pay their wages.

What has stayed the same?

The employee will be paid for all of the hours they have worked and 67% of the hours not worked.

Businesses that have to close because of Tier 3 lockdowns can continue to access even greater funding. For these businesses, the Government will pay 67% and the employer does not need to contribute.

In all cases, the employer remains responsible for employer’s National Insurance and pension contributions.

What has changed?

The minimum hours worked has been reduced to 20% (it was going to be 33%).

The Government will now pay 62% of the hours not worked and the employer will pay 5% (was going to be 33% and 33%).

So, who pays what?

The amount of support changes depending on how many hours an employee works.

Job Support Scheme examples


The Job Support Scheme will pay different amounts depending on the hours worked

An example

This example shows how much an employee, who normally earns £1,000, would get if they can only work one day a week instead of five.

  • The employee is paid £200 by the employer for the time they have worked (was £330)
  • The employer must pay an additional £40 – that is 4% of their normal pay (was £220)
  • The Government will pay £496 – 49.6% of their normal pay (was £220)
  • The amount not paid will be £264 – which is 26.4% of their pay (was £220)

Employees can end up receiving less pay

Because the minimum hours has been reduced from 33% to 20% , an employee who is kept on working at the bare minimum hours would be worse off under the revised scheme. If the employee is given 33% of their normal hours, they are no worse off.

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on whatsapp

Other Insights

VAT on hospitality and setting your prices

The reduced VAT rate of 5% for the hospitality industry is due to end on 30 September 2021. It’s time for businesses to consider how this will impact their trade.

To prepare, we recommend that our clients: review their prices; prepare till systems for the change; save for their VAT bill; constantly monitor their business’ performance.

Read More »

Electric cars can save you tax

Imagine being stood in the car show room, wondering whether you should buy an electric car. You are busy considering which model will suit you best and the sales team start telling you about the many benefits of buying through the company.

Read More »


You will be able to claim a deduction from your corporation tax bill if you invest in new productivity enhancing plant and machinery. The expenditure

Read More »

This website uses cookies to ensure you get the best experience on our website.