Minister: JET's top-up funding model was 'unsustainable'

Jersey's Social Security Minister says continuing to give Jersey Employment Trust more top-up money was 'unsustainable'.

JET announced this week that all 38 of its staff are at risk of redundancy, and it is closing its waiting to new clients list after the government capped its funding.

The charity, which supports people with disabilities into work, receives £1.9 million a year in core funding from the government.

However, for the past few years it has relied on additional 'top-up' grants to meet rising demand for its assistance. Last year that extra money totalled £785,000.

This means the cost of running the service last year was just under £3 million. 

READ: all JET staff at risk of redundancy as government caps funding

JET said:

"The confirmed decision that further additional funding will not be available means the current contract is no longer sustainable at its existing scale."

Social Security Minister Lyndsay Feltham says she has a responsibility to make sure taxpayers' money is used appropriately, and the reason for the cut lies in JET 'running considerable overspends', which are 'unsustainable'.

In a further statement to the media late on Thursday, the board disputed this, saying that all additional funding has been pre-approved by the government and used specifically to meet increased demand, and is 'not overspending.'

Deputy Feltham has since clarified her use of the term was to illustrate that JET was spending 'over' and above its core grant.

JET's board says its core funding has not kept pace with inflation over the past decade.

"By way of context, the organisation’s funding of £1.9 million in 2015 would equate to around £2.9 million  today, taking into account inflation over the same period."

The Social Security Minister says JET was aware it wouldn't be able to continue to apply for further grants:

"I said I would sign off on additional grant funding to get them through 2025. 

"The funding for 2025 was given on the basis that we wouldn't be in a position to give further top-up funding in future years. 

"We are aiming to get to a sustainable funding position with JET.

"We are ensuring that people have the services they need, whether that's through JET, through government, or through another service provider.

""Our Back to Work team are open...as we will work with JET to ensure that people that they can't meet the needs of are transferred over to government services."

"We have also undertaken to work with JET on a case-by-case basis."

JET helped 550 people last year and has a waiting list of 50.  It is not taking new referrals while it considers how it can restructure.  It said:

"JET remains focused on supporting clients and staff with care and clarity and will continue to engage constructively with Government to seek the best possible outcome for its clients who are at the heart of everything we do."

The government says anyone concerned about their support or who would like to talk to a dedicated advisor should call 447608 or email customerservice@gov.je