Online application process for payroll co-funding goes live in Guernsey

Guernsey States
The Hardship fund is also being brought back to provide islanders with urgent financial assistance. Credit: ITV Channel TV

Guernsey businesses that are eligible for payroll co-funding from the government can now submit an application online.

It comes after it was announced last week that the scheme would be reinstated after the island was forced into another lockdown. The Hardship fund is also being brought back to provide islanders with urgent financial assistance.

Payroll Co-Funding Scheme

The list of eligible businesses will be largely similar to the first lockdown. It will be for those who are heavily restricted during this period.

Those who apply will receive 80% of the minimum wage (£8.70 per hour) for their employees. Although this will be capped at 42 hours a week. Employers will be required to top up the other 20%.

The scheme will also be open to sole traders and self-employed people.

Claims can be put in from 1 February for the period commencing 23 January.

The States of Guernsey estimate this support will cost £2.5 million per week and the Chief Minister has asked for businesses who can survive without support not to apply.

The Hardship Fund

The £250,000 hardship fund will be reinstated for people who are struggling financially but may not be eligible for standard benefit support.

Meanwhile Guernsey's Policy & Resources Committee have had to backtrack on plans to take back taxpayers' money from businesses who claim payroll co-funding support but, eventually turn a profit this year.

The Chief Minister, Deputy Peter Ferbrache, had urged businesses to think very carefully about whether they needed to make a claim, and said businesses who ended up bouncing back well from this lockdown would be told to pay some of the money back from their profits.

However, the Policy and Resources Committee had to later issue a statement clarifying that the self-employed and sole traders will only have to pay back some co-funding support if they turn a profit of more than £50,000.