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What just happened?
The Chancellor's economic support package caught up with the reality that restrictions - whatever the Tier - are tough for some businesses. He's:
Reduced the hours worked requirement (33% to 20%)
And slashed the employer contribution (33% to 5%)
The Chancellor's economic support package caught up with the reality that restrictions - whatever the Tier - are tough for some businesses. He's:
Reduced the hours worked requirement (33% to 20%)
And slashed the employer contribution (33% to 5%)
This has, pretty much, fixed the JSS.
The incentive to keep two people on part-time rather than one on full-time, with the other made redundant is here.
Crucial for keeping unemployment down this winter.
The incentive to keep two people on part-time rather than one on full-time, with the other made redundant is here.
Crucial for keeping unemployment down this winter.
And, when you add in the impact of the Job Retention Bonus the incentives are even stronger - particularly at lower wages.
Chart shows cost of keeping people at various wage levels working half-time for six months.
Chart shows cost of keeping people at various wage levels working half-time for six months.
Still some concern that firms not told to close but effectively forced into doing so by social distancing won't be able to manage 20% of usual hours worked. But as far as support for jobs this winter goes, the Chancellor has sorted it out.
*This should have happened weeks ago.
*This should have happened weeks ago.
...Just as rushing policy decisions leads to mistakes (the design of the original JSS) so does rushing tweet threads. My first chart should have looked like this:
