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Phase 2 of Co-Funded Payroll Scheme open for applications

01 May 2020

Senator Lyndon Farnham

​Local businesses and the self-employed can now apply for emergency COVID-19 support, worth up to £1600 per worker, per month, under Phase 2 of the Government’s Co-Funded Payroll Scheme (CFPS).

The scheme, which initially subsidises payroll and earnings from 1 April 2020 to 30 June 2020, has been designed to protect jobs and support businesses challenged with the disruption caused by the Coronavirus pandemic.

Through the three months where Phase 2 support has currently been committed, the Government of Jersey has pledged to help up to 27,000 eligible workers by providing funding of up to £138 million.

The Phase 2 support is available to both employers and the self-employed in sectors most affected by the Stay at Home instruction. Eligible employers can claim for a refund of 80% of the first £2,000 of their employees’ wages, up to a maximum payment of £1,600 per month, per person. Business owners, sole-traders and partners who are liable for Class 2 Social Security contributions, can receive the same amount of support, but based on their earnings in 2019. 

In addition, new businesses and self-employed people who have started trading in 2020 can also receive Phase 2 support.

Employers are expected to pay a minimum of 20% on top of the subsidy from Government, although it is recognised that this won’t be possible for some business. The Government has therefore included a special exemption scheme, which can be claimed under if a business cannot meet this cost due to no cash-flow or working capital being available.
Should disruption continue in the local economy, the scheme may be extended past its current end date of 30 June 2020.

The Minister for Economic Development, Senator Lyndon Farnham, commented:
“Phase 2 of the Co-funded Payroll Scheme is a substantial and broad scheme which Ministers firmly believe currently provides the right level of payroll support for Jersey.

“In these difficult times, we have a scheme that ensures timely support to a large amount of our local workforce – and certainly those who need this help the most. 

“Ministers are conscious that as the situation progresses, different economic support measures may be required in different parts of the economy, and therefore we have committed to keeping the situation under review.” 

The online application form and more detailed information about the Phase 2 Co-Funded Payroll Scheme, including eligibility, guidance and comprehensive FAQs, are available on the Government of Jersey website.  Businesses will be required to apply every month for support.

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