Jersey’s Co-Funded Payroll Scheme (CFPS) is being reintroduced, and the Fixed Cost Support Scheme (FCSS) is being extended to support businesses sectors that are being severely affected by Omicron and the public health measures introduced in response to it.
CFPS will provide payroll support for December 2021 and January 2022.
For businesses whose income has fallen by more than 20% this month, compared to December 2019, will be able to claim up to £1,250 per worker for the month. Businesses will be able to claim for December in January, and in February for January.
The Minister for Economic Development, Tourism, Sport and Culture, Senator Lyndon Farnham, said: “It is clear that Omicron has affected consumer confidence, and that businesses and livelihoods continue to need support in some sectors. We will maintain support where it is needed, as we have throughout the pandemic.”
The Minister for Treasury and Resources, Deputy Susie Pinel, said: “We gave an assurance when we closed the last Co-Funded Payroll Scheme that we would look to reinstate it if circumstances changed. The Omicron variant and public health guidance has meant that some businesses are seeing a downturn in trade and we see the reintroduction of the CFPS for a defined period as an insurance against the unknown factors and potential impact of Omicron.”
CFPS was established in April 2020 to help protect Islanders’ jobs by subsidising the payroll for Jersey businesses and the earnings of the self-employed. At its peak, the CFPS supported more than 15,000 jobs and 3,500 businesses at a monthly cost of £21 million. October 2021 was the last month for which businesses could claim when, depending on the fall in income, businesses could claim up to £1,250 per employee to cover 30% to 50% of each employee’s monthly wage.
The cost of extending CFPS by a month is estimated at £500,000 which will be met from the existing budget for the scheme in 2021 and from funding established in the Government Plan to support the economy as part of the Covid-19 response.
The Fixed Cost Support Scheme (FCSS) will also be extended to cover additional sectors. The scheme makes a financial contribution towards the fixed costs of up to £5,000 (based on the size of the premises) in eligible sectors.
These schemes are in addition to other economic support measures:
- Visitor Attraction and Events Scheme
- Visitor Accommodation Support Scheme
- Fiscal Stimulus Fund
- Deferred Social Security and GST
Co-Funded Payroll Scheme
- Maximum subsidy: 50% of £2,500 per eligible worker per month
- Subsidy Formula: Equal to detriment (g.50% detriment = up to 50% x £2,500 per worker per month)
- To be eligible, businesses must be:
- operating in an eligible sector (see below)
- have two or more workers
- been in possession of a business licence dated earlier than 21 December 2021
- Single FTE undertakings are no longer able to claim should be able to access income support, and therefore the CFPS will not be available to single FTE undertakings.
- Businesses that have claimed support on any Covid business support subsidy scheme in error, and have not repaid or agreed a payment plan with CLS, will not be permitted to claim further support
Eligible sectors – business activities
- Hotels and similar accommodation
- Holiday and other short-stay accommodation
- Event catering and other food service activities (when events)
- Organisation of conventions and trade shows
- Other reservation service and related activities
- Renting and leasing of motor vehicles
- Travel agency and tour operator activities
- Air transport (scheduled passenger)
- Other passenger land transport
- Water transport (sea and coastal, inland)
- Photographic activities (when connected to events)
- Renting and leasing of other tangible goods (when connected to events)
Fixed Cost Support Scheme
- The scheme makes a financial contribution towards the fixed costs of a business.
- The maximum claim is capped by four different subsidy levels, which are determined by the Parish rates paid by the business on their business premises in 2020.
- Business activities which are eligible in December 2021 and January 2022
- Beverage serving activities
- Licensed restaurants
- Unlicensed restaurants and cafes
- Take away food shops and mobile food stands (includes sandwich shops)
- Creative, arts and entertainment activities
- Motion picture projection activities
Business activities which are eligible in January 2022
- Other personal service activities not specified elsewhere
- Physical well-being activities
- Hairdressing and other beauty treatment
- Driving school activities
- Other human health activities
- Sports activities
- Sports and recreation education
- Cultural education
- Printing and reproduction of recorded media (where 75% of trade is events/tourism related)
- Other retail sale not in stores, stalls or markets
- Retail sale of watches and jewellery in specialised stores
- Other retail in non-specialised stores
- Other retail sale of new goods in specialised
- Retail sale of clothing in specialised stores
- Retail sale of cosmetic and toilet articles in specialised stores
- Retail sale of cultural and recreation goods in specialised stores
- Retail sale of footwear and leather goods in specialised stores
- Retail sale of other household equipment in specialised stores
- Retail sale of second-hand goods in stores
- Retail sale via mail order houses or via Internet
- Wholesale of food, beverages and tobacco
- Non-Specialist Wholesalers (where 75% of trade is tourism related)
The subsidy payable will depend on the eligible fixed costs that the business can demonstrate during the relevant month.
