The news story has been released on 17 December 2020 providing certainty for millions of jobs and businesses.
The changes have been announced ahead of the Budget, which the Chancellor has confirmed will take place on 3 March 2021.
Key points to note:
- The review on employer contributions in January 2021 has been brought forward to allow businesses to plan ahead. The government has confirmed that it will continue to pay 80% of the salary of employees for hours not worked until the end of April 2021. Employers will only be required to pay wages, National Insurance Contributions (NICs) and pensions for hours worked; and NICs and pensions for hours not worked.
- The eligibility criteria for the UK-wide scheme will remain unchanged and these changes will continue to apply to all Devolved Administrations.
- The news story provides further reassurances that the next phase of support will be announced through the Budget on 3 March 2021.
With the ONS figures released this week showing 370,000 redundancies between August and October 2020, the government is clearly trying to provide the support and reassurance needed to stem job losses.