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Government extends payroll scheme

06 October 2021

The Co-Funded Payroll Scheme (CFPS) is being extended for a further month in order to support business sectors that continue to be severely affected by the pandemic and travel disruption.

The scheme was established in April 2020 to help protect Islanders' jobs by subsidising the payroll for Jersey businesses, and the earnings of the self-employed. September was due to be the last month for which businesses could claim, but this extension will enable any business claiming for the month of September to continue to claim for October. Depending on the fall in income experienced, during November businesses will be able to claim up to £1,250 per employee to cover between 30% and 50% of each employee’s October wage.

The Minister for Treasury and Resources, Deputy Susie Pinel, said: “The CFPS has been the biggest economic intervention made by Government in Jersey’s history. It has helped thousands of businesses continue to operate and has been the centrepiece of the Island’s strategy to protect livelihoods during the pandemic. 

“Now that public health restrictions have been lifted, the economy is recovering, and the labour market is rebounding strongly, it is time to ease the support that Government is giving to businesses. We are reducing the maximum subsidy from 90% to 50% for October, and I anticipate this being the final month when support in the form of the CFPS will be available, although we will ensure that sufficient support is in place for the few sectors that continue to be severely affected.”

At its peak, the CFPS supported more than 15,000 jobs and 3,500 businesses at a monthly cost of £21 million. Claim rates have fallen significantly following the lifting of public health restrictions; in August (the last month for which claims were made) just over 200 businesses accessed support for around 900 employees and the self-employed.

The Minister for Economic Development, Tourism, Sport and Culture, Senator Lyndon Farnham, said: “Highly seasonal businesses, such as those in the events sector, haven’t had the opportunity to generate the level of profits needed to see them through the quieter off-season, and others continue to be impacted by travel disruption. Officers from across Government are working together to determine the right form of longer-term support to address the cashflow challenges that will be faced by highly seasonal sectors who only operate profitably for a short period of time but employ staff throughout the year.”

The cost of extending CFPS by a month is estimated at between £600,000 and £1 million which will be met from existing CFPS funding allocation. The Business Disruption Loan Guarantee Scheme will also be extended.
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