Jersey Employment Trust has placed all its 38 staff at risk of redundancy and paused new client referrals following a 'substantial' cut to its government funding.
The charity says the jobs of all its staff are on the line after the government pulled 'top-up funding', forcing it to look at ways to cut costs.
JET receives £1.9 million a year from the government's Employment, Social Security and Housing department to provide vocational training and employment support for islanders with disabilities and long-term health conditions.
For the past four years, 'top-ups' in the form of one-off grants have been necessary to meet increased demand for JET's services and the cost of living.
Last year, the additional funding was £785,000.
It is the top-up grants that have been withdrawn.
To stay within the £1.9m grant, JET says it likely needs to refer more than half of the 550 clients it supports each year to the government.
JET says that no final decisions have been made on individual roles within the organisation, and the consultation process is intended to explore all options, including ways to minimise compulsory redundancies where possible.
It will, however, close its waiting list of more than 50 islanders and stop accepting any new referrals, including any school leavers this summer.
Social Security Minister Lyndsay Feltham says she does not want anyone worrying 'unnecessarily' and shares the government's stance:
"Firstly, I want to reassure everyone who gets support from JET that we are absolutely committed to making sure they get the assistance they need.
"JET does incredibly valuable work in our community, and we are working with them to make sure that continues.
The Minister says JET has been running 'considerable overspends for several years':
"This is taxpayers’ money, and I have a responsibility to make sure we’re using it appropriately.
"Government funding for JET remains at more than £2,000,000 this year, and we are working to agree a long-term funding commitment with them, to provide certainty in the future.
"I know the pressures that charities are facing, and we are working to make sure funding is directed where it is most needed and can make the greatest impact.
"If anyone has concerns about their support or would like to talk to a dedicated advisor, please call 447608."
JET estimates it provides more than £10m social value benefit to the island every year, including through increased tax and Social Security contributions and savings to the Income Support bill.
Staff at Acorn Enterprises, which is a separate company under the umbrella of JET encompassing Acorn Reuse, the plant nursery and Woodshack, are unaffected.

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