This will enable the Government to directly support the wages of people in work – giving businesses the option of keeping employees in work on shorter hours rather than making them redundant. The scheme is built on three principles
- It will support ‘viable’ jobs and therefore employees must work at least a third of their normal hours and be paid for that work as normal by their employer. The government, together with employers, will then increase their wages to cover two-thirds of the wages they’ve lost through working reduced hours, with one third being paid by the employer and one third being paid by the government (up to a maximum of £697.92 per month).
- The Government will target support at businesses which need it most. All small and medium-sized businesses are eligible but larger businesses will only be eligible where their turnover has fallen through the crisis.
- It will be open to all employers across the UK, even if they have not previously used the furlough scheme.
The scheme will run for six months, starting on 1 November 2020.