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Government Co-Funded Payroll Scheme extended

02 June 2020

Treasury Minister, Deputy Susie Pinel
The Government Co-Funded Payroll Scheme has been extended until at least the end of August 2020, following a decision from the Council of Ministers yesterday. 

The Scheme, which subsidises payroll and earnings, was established as one part of the Government’s wider emergency support package for thousands of Islanders and businesses during the coronavirus pandemic. As of 25 May 2020, the Scheme has received 3,068 claims supporting over 15,423 workers. Payments under the Scheme totalled £19,738,661. 

Ministers will keep the Scheme under close review, and have acknowledged that the Scheme is supporting a significant number of businesses and their employees during a period of economic disruption in the Island.
Whilst the extension will be until 31 August 2020, the Government will continue to analyse the data obtained from the Scheme and intends to make a decision in July about how the Scheme may further continue or be phased out after August. 

The Treasury Minister, Deputy Susie Pinel, said: “I am pleased that my fellow Ministers have seen the importance and necessity to extend the Co-Funding Payroll Scheme until at least the end of August. Currently, the Scheme is supporting more than one third of our workforce outside of financial services. 

“The Scheme was initially established with a number of core objectives in mind. These focused on supporting Islanders’ livelihoods by ensuring employment where possible; maintaining existing employment relationships so businesses can retain experienced staff; and ensuring eligible businesses and self-employed Islanders can remain solvent during this crisis. 

“Looking ahead to the long-term future of our Island, the Scheme also aims to accelerate the recovery of our economy after COVID-19. 

“We are conscious that the situation is fast-moving, and will require us to be flexible and adaptive. The Scheme will be reviewed regularly over the summer.” 

It is currently envisaged that the Scheme guidance, which sets out the conditions of the Scheme, will remain substantially the same as that originally implemented, although this will remain under review during June.
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