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

  1. 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).
  2. 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.
  3. 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.