Jersey wage subsidy scheme to be changed to help businesses avoid collapse

A scheme to co-fund the wages of the majority of Jersey’s workers is being changed to help prevent businesses collapsing during the coronavirus crisis, but it could leave employees facing a pay cut.

ITV News understand the phase two plan, which would have seen 80% of wages paid by government, up to a maximum of £1,600 per month for April, May and June for eligible sectors, will now not oblige employers to pay the remaining 20% of wages.

• These Jersey businesses won’t get government wage subsidies

This would make the scheme similar to the UK’s furlough scheme.

Senator Lyndon Farnham today told the States Assembly the final details were due to be made public shortly.

• Minority of Jersey businesses can now claim wage subsidy

• Government to subsidise the wages of half of Jersey’s workforce

The Senator added it was key that government was willing to amend its support package at speed in order to protect businesses and jobs.

He said: “We need to be as politically agile as we possibly can. We will consider any measures that can help businesses and the jobs they provide. The government will be as agile as possible as we learn day by day of the challenges being put on businesses and we will act accordingly.”

When asked if he would follow Denmark in refusing support for businesses that do not pay taxes locally, he said: “We haven’t considered that.”

• Coronavirus: All the information and advice for the Channel Islands in one place