UK job support schemes - update

Below is a high level summary of the job support schemes currently operating in the UK.

Coronavirus Job Retention Scheme (CJRS) (also known as "furlough" scheme)

• When the CJRS was launched, it allowed employers to claim for 80% of their employees' wages (up to £2,500 per month) plus any employer National Insurance and pension contributions, where they were furloughed due to coronavirus.

• The Scheme applied initially to the period beginning on 1 March 2020 and ending on 31 May 2020, but has now been extended multiple times.

• The CJRS was modified from 1 July 2020 when "flexible furlough" was introduced allowing furloughed workers to return part-time. Employers are required to pay employees in full for hours worked, but the CJRS remains available for normal hours not worked.

• A taper was also introduced from August 2020, requiring employers to start to contribute to furloughed salaries as the scheme was wound down with a view to closing on 31 October 2020. From 1 August 2020, employers were required to pay employer national insurance contributions and employer pension contributions, with the government funding still covering 80% of wages up to a cap of £2,500. From 1 September, employers were required to pay 10% of wages, with the government paying 70% (capped at £2,187.50). From 1 October, employers were required to pay 20% of wages, with the government scheme paying 60% (capped at £1,875).

• However, in November 2020, the CJRS was extended again in its flexible form with a view to closing on 1 January 2021. The Scheme was extended its original more generous terms, with employees eligible to receive 80% of salary for hours not worked, up to £2,500.

• In January 2021, the CJRS was extended again until 30 September 2021. A taper will apply from 1 July 2021 with employers required to contribute 10% in July and 20% in August and September as the scheme winds down.

• Read more about the CJRS here.

Job Support Scheme (JSS)

• Last year, the government announced a new Job Support Scheme, which was due to start on 1 November 2020 following the closure of the CJRS. The Scheme has now been shelved as the CJRS has been extended. The guidance has been withdrawn.

Job Retention Bonus

• In light of the extension of the CJRS, the Job Retention Bonus has been withdrawn. This was intended to be a one-off taxable payment of £1,000 payable to employers for every eligible employee who has been furloughed and kept continuously employed through to the end of January 2021.

Self-Employment Income Support Scheme

• The Self-Employment Income Support Scheme (SEISS) is a scheme set up by the UK Government to provide support to the self-employed, either as a sole trader or a partner in a partnership, based on a calculation of up to 80% of average earnings.

• The scheme was originally announced on 26 March 2020 and provided an initial grant for self-employed individuals whose businesses were adversely affected by the pandemic on or before 13 July 2020. Further grants have since been made available.

• It is no longer possible to claim for the first, second or third grants. Claims for the fourth grant will be available in April 2021. A fifth grant has also been announced.

Kickstart scheme

• This scheme provides funding to employers to create new job placements for young people aged between 16-24 who are on Universal Credit and at risk of long-term unemployment.

• Funding covers 100% of National Minimum Wage for 25 hours per week for a total of 6 months (plus associated employer National Insurance contributions and employer minimum automatic enrolment contributions).

• From February 2021, the government has made it simpler for employers to benefit from joining this scheme and have removed the limit requiring they create a minimum of 30 job placements.

• CBI has published a factsheet on this scheme.

• The scheme is currently due to run until December 2021.

SSP for Shielding

• Shielding was initially introduced between March and August 2020 for those who were "clinically extremely vulnerable" because they were at high risk to serious harm from coronavirus. Those individuals received a letter from the NHS and were advised to stay at home. If they were unable to attend work and could not work from home, they were eligible for Statutory Sick Pay (SSP).

• The initial "Shielding" scheme was paused temporarily with effect from 1 August 2020 and clinically extremely vulnerable employees were generally no longer eligible for SSP. However, it was subsequently reintroduced.

• Under the most recent national lockdown, individuals who are clinically extremely vulnerable are advised to stay at home as much as possible. If they cannot work from home, individuals in this category should not attend work for this period of restrictions and may be eligible for SSP. SSP may be reclaimed through the SSP Rebate Scheme. The guidance also suggests that furlough may be available. Individuals who live with those who are extremely vulnerable but who are not themselves clinically extremely vulnerable can still attend work.

• The clinically extremely vulnerable will get priority access to vaccination against COVID-19 before the general population. The government indicated in their Spring Roadmap that they do not anticipate that it will be necessary to advise shielding beyond the end of March 2021 and is considering long term support for those who are clinically extremely vulnerable.

Test and Trace support payment for low-income workers

• From September 2020, the government introduced a new payment for people on low incomes (and are unable to work from home) who are under a legal obligation to self-isolate.

• Eligible individuals who test positive with Covid-19 may receive payments of up to £500.

Incentive payment for hiring trainees or apprentices

• The government has introduced an incentive payment to support employers who hire new apprentices between 1 August 2020 and 31 March 2021. The level of payment is based on age: £2,000 for apprentices aged 16-24 and £1,500 for apprentices over 25. Claims must be made through the apprenticeship service.

• The scheme was initially intended to apply until 31 January 2021, but has been extended.  The payment is only for new apprentices, not continued funding for existing apprentices.

• Separately, the government has also introduced an incentive payment for employers who provide traineeships (which involve a programme of learning and skills), offering employers a £1000 bonus for every trainee they take on, up to a maximum of 10 trainees. Employers can claim this incentive for work placements delivered between 01 September 2020 and 31 July 2021.

See our coronavirus (COVID-19) feature for more information generally on the possible legal implications of COVID-19.