Jersey's payroll co-funding scheme will be gradually phased out until the end of March 2021.
The government has been paying 80% of business employees' wages up to a value of £1600 per month since April.
It will stay at 80% until the end of August and will then gradually decrease over the coming months:
September and October - 60% of wages up to £1600
November and December - 40% of wages up to £1600
January - 30% of wages up to £1600
February and March - 20% of wages up to £1600
Economic Development Minister, Senator Lyndon Farnham, says it's a 'significant extension' to the scheme - which he says is 'more substantial than most jurisdictions worldwide':
“The extension to our payroll scheme will help to maintain the protection of jobs throughout the winter months. We are also fulfilling the government’s commitment to avoid a cliff-edge end to financial support. It is essential to provide businesses with the certainty of a continuing subsidy, to allow them to plan ahead as trading adapts and the economy begins to recover."
The eligibility criteria are also being reduced - with businesses having to prove a 20% income hit rather than the current 30% from September.
Jersey's Treasury Minister, Deputy Susie Pinel, says it will allow more businesses to qualify for support:
“As well as extending the scheme, we are also lowering the detriment test from 30% to 20%. This means businesses will only need to show a 20% reduction in income and it will allow more businesses to qualify for support. This will aid economic recovery and share financial support across a wider business base, as subsidies reduce and economic activity returns.
“There will be no change to eligibility, but businesses will be able to claim for new or different employees if those employees were Registered or Entitled to Work and on any payroll in March. Funding for the scheme has been confirmed by the Treasury until at least the end of December and, subject to the approval of the new Government Plan by the States Assembly, until March 2021."
More to follow...