The Furlough Scheme introduced by the Government back in March comes to an end on the 31st October. Across the UK, 9.6 million workers have been furloughed, with the scheme used by 1.2 million employers.
In terms of cost, the government anticipates a total figure of £60bn, with over £39.3bn already claimed by the end of September.
Two new schemes have been announced this week, which will replace Furlough from the 1st November.
New Job Support Scheme
This scheme will run for six months, from 1st November – end April 2021.
Under this scheme, staff must return to work for a minimum of 33% of their contracted hours – and they will be paid by the employer for this work, with a top-up by employer and government to at least 77% of their pay during this time. Staff who use this scheme do not need to have previously been furloughed.
Lockdown Job Support Scheme
An alternative scheme has been introduced for organisations who are forced to close. Where the Government impose closures, employees in the affected businesses will be paid 67% of their salary by the Government, with the remining 33% being unpaid.
What does this mean for the Employment Market?
The schemes introduced from November will hopefully give some stability to employment over the winter period. However, there will inevitably be companies who can not afford to pay the required wages under the Job Support Scheme (or who do not need their staff to return to work for that period).
For most, the scheme should give some reassurance and provide support through the challenging months to come.
If you are made redundant, or fearing for your job security, it is important to be pro-active and remain positive in your job search. See our previous blogs for further details and support.