Treasury and Exchequer
Ministerial Decision Report
changes to the guidance for the government co-funded payroll scheme phase 2
- Purpose of Report
To enable the Minister for Treasury and Resources to approve changes to the guidance for the Government Co-Funded Payroll Scheme (CFPS) Phase 2.
- Background
The Minister for Treasury and Resources approved MD-TR-2020-0049, which established the CFPS Phase 2. To optimize the operation of the CFPS Phase 2 there is a need to amend the Scheme guidance.
The revised guidance is appended to this decision with the following key changes identified:
Amend the declaration of material detriment
For the purposes of the declaration of material detriment, amend references to “relevant qualifying month” to “relevant period”.
Insert the following paragraphs:
25. The relevant period for the calculation of material detriment can be calculated by a business in two ways:
i) The qualifying month for the claim; or
ii) A period of three months ending with the qualifying month for the claim.
26. If a business decides to calculate material detriment on the basis of three months ending with the qualifying month for the claim, it must continue to calculate material detriment on that basis for all subsequent claims under the scheme.
70. Holiday Clubs provide an important source of childcare during the school holiday periods. The nature of employees of holiday clubs means that most will not have been employed and on the social security schedule for March 2020. Given the unique position of holiday clubs they will not be required to claim for the employees on the March 2020 schedule, however they will be capped on the number of employees claimed for at the same number as claimed for and listed on the relevant 2019 schedule
3. Recommendation
On 29th June 2020, the Ministers for Treasury and Resources, Social Security, External Relations and Economic Development, Tourism, Sport and Culture approved the above amendments to the CFPS Phase 2. The group recommended that the Minister for Treasury and Resources approve the changes to the guidance for the Co-Funded Payroll Scheme Phase 2.
4. Reason for Decision
The Minister for Treasury and Resources approved MD-TR-2020-0049, to establish the Co-Funded Payroll Scheme Phase 2, and MD-TR-2020-0063 to extend the scheme until 31 August 2020.
Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a government plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan
Changes to the Scheme guidance were agreed on 29th June 2020 by the Ministers for Social Security; External Relations; and Economic Development, Tourism, Sport and Culture.
5. Resource Implications
These changes will result in higher costs that would have been incurred if the CFPS Phase 2 Guidance had not been changed, but these costs are forecast to be met from within the funding already allocated by the Minister for Treasury and Resources.
Report author : Head of Investment Appraisal | Document date 29th June 2020 |
Quality Assurance / Review : Head of Financial Governance | File name and path L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2020-0083 - Changes to the guidance for the Government Co-Funded Payroll Scheme Phase 2 |
MD sponsor: Treasurer of the States |