JSS changes could limit rise in redundancies

The UK fiscal package just release by Rishi Sunak was more generous than had been anticipated. Particularly the changes to the Job Support Scheme that take effect in all areas, not just Tier 2. At first glance the Markets team's view is that the original Job Support Scheme wouldn't have saved that many jobs - if you needed to make redundancies you still would, particularly as an employer you had to contribute 33% of wages for unworked hours. Now that contribution is down to 5% and minimum hours are also reduced from 33% to 20%, it makes it a lot more attractive to hold on to staff if you can remain open in a reduced capacity. Together with the extra assistance schemes for primarily hospitality sectors in Tier 3 (announced yesterday) and Tier 2 (announced alongside the JSS changes today), this scheme could actually help such a sharp rise in redundancies in the weeks/months ahead.