More businesses will be able to receive financial support from Jersey’s Co-Funded Payroll Scheme (CFPS) for December 2021 and January 2022.
The Council of Ministers has extended CFPS eligibility to include restaurants, bars, coffee and sandwich shops, taxis, cinemas and the arts, and sole traders in all qualifying sectors. Those sectors are in addition to hotels, event organisers and other hospitality businesses, which were already eligible.
The Minister for Treasury and Resources, Deputy Susie Pinel, said: “When the scheme came to an end late last year, we gave a commitment that we would review it if public health measures meant that businesses required additional support. We have listened to the representations and have agreed that expanding the scheme to include these additional sectors is supportive.”
The Minister for Economic Development, Tourism, Sport and Culture, Senator Lyndon Farnham, said: “By extending payroll support eligibility, we are helping to protect businesses and jobs in the sectors which continue to be most severely affected by Covid-19.”
Sectors such as retail and hairdressing, and other close contact services, have not yet been added because the Council of Ministers has requested further information in order to understand the impact that public health measures are having on them.
Businesses will be able to claim up to £1,250 per employee if their income for December 2021 fell by more than 20% compared to December 2019. The scheme’s administration is being prepared, and an announcement will be made when guidelines are completed, and businesses are able to submit their claims.
In February, businesses will be able to submit claims for January if their detriment is more than 20% compared to January 2020.
For more information, visit the Government support for businesses website.
Co-Funded Payroll Scheme
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.
- Maximum subsidy: 50% of £2,500 per eligible worker per month
- The subsidy formula is 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 and have been in possession of a business licence dated earlier than 21 December 2021
- 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
The CFPS is in addition to other economic support measures:
- Fixed Cost Support Scheme
- Visitor Attraction and Events Scheme
- Visitor Accommodation Support Scheme
- Fiscal Stimulus Fund
- Deferred Social Security and GST
