RISHI Sunak has been forced into a U-turn, making major changes to the Job Support Scheme he launched just last month. 

The programme, which is set to replace furlough which ends next week, initially wanted to put much of the pressure on the employer.

An employee would need to work at least a third of their normal hours, with the Treasury then paying a third of their wages, and their employer another third.

But with warnings of mass redundancies to come as the UK battles rising cases of coronavirus, the Chancellor has cut the number of hours an employee would need to work and said the Government would now contribute more to their pay packet.

Under the new rules, employers will now need to contribute 5%, while employees will need to work  20% of their normal hours. 

READ MORE: Rishi Sunak keeps SNP in dark over new emergency Covid funding measures

The state will pay up to almost 62%, up to a maximum of £1,541.75 a month.

Sunak said that meant if someone was being paid £587 for their unworked hours, the Government would be contributing £543 and their employer only £44. 

Alongside the expansion of the JSS, the Chancellor increased the amount of profits covered for the new self-employed grant schemes, from 20% to 40%, meaning the maximum grant will increase from £1,875 to £3,750.

The Treasury said this was a potential further £3.1bn of support to the self-employed people through November to January, with a further grant to follow covering February to April.

Sunak said: “I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today. These changes mean that our support will reach many more people and protect many more jobs.

“I know that the introduction of further restrictions has left many people worried for themselves, their families and communities. I hope the government’s stepped-up support can be part of the country pulling together in the coming months.”

The SNP’s shadow chancellor Alison Thewliss said the “half-baked panicked partial U-turn” was “too little too late”. 

She added: “It is no replacement for a full furlough scheme and it doesn't go anywhere near far enough to protect jobs and businesses. The Tories have clearly made a decision to let unemployment soar - and it is one that will lead to years of pain for families and communities.

"The SNP has been calling for a full extension to the furlough scheme, the devolution of financial powers, and support for the excluded for more than six months - but the Tories have refused to listen and failed to act. For many it is already far too late. Thousands of workers have already lost their jobs, many good businesses have gone under, and millions of excluded people have been left with nothing.”

She accused the Tory Government of having “deliberately hindered Scotland's ability to respond to this crisis” by “withdrawing financial support and blocking the devolution of financial powers.” 

Thewliss added: “"It is vital that the UK Government makes clear what Barnett consequentials will now be available to Scotland. The SNP will continue to press for full financial support and the devolution of financial powers but it is clearer than ever that the only way to properly protect Scotland's economy is to become an independent country."

The Citizens Advice Scotland social justice spokesperson, Mhoraig Green, said the changes were a step in the right direction, and the scheme was now more accessible to more businesses, but she warned of a rising unemployment.

She added: “But for those businesses which have had to shut completely and the workers they used to employ, as well as those who are self-employed and having to rely in significantly reduced government support, this is too little too late.

“The Citizens Advice network across Scotland has seen significant increases in the number of people seeking help with employment and redundancy rights over the past six months. We expect those numbers to continue to go up”.

Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, said it was vital that any emergency Covid funding for areas in England placed into tier two or tier three lockdowns resulted in consequentials for Scotland. 

She said:“As the Scottish Government is set to confirm its own approach to a tiered system of restrictions, it is essential that consequential funding is delivered to where it is needed most to save jobs. This must also be tied to every stage of restriction as a matter of course and not in incremental, repeated tweaks. 

“It is clear that this winter will be extremely difficult for employers, their employees and a sustained approach to jobs support into 2021 is critical.’’