Government launches co-funded payroll scheme

Today, the Assistant Minister for Treasury and Resources, Senator Ian Gorst, has signed a Ministerial Decision to launch Phase 1 of the Government Co-Funded Payroll Scheme (CFPS). 

The scheme will ease the impact of COVID-19 on businesses and employees by providing support of up to 27,000 jobs at a total cost of up to £101 million.

CFPS is an emergency scheme which aims to maintain employment industries which have been severely affected by the public health restrictions introduced in March due to COVID-19. That includes hotels, restaurants, bars, certain wholesalers and retailers, the fisheries industry, and hairdressing and other beauty treatments. 

From today, businesses can apply for Phase 1 of the scheme to claim for disruption caused between 20 March 2020 and 31 March 2020, using an online form. Detailed formal Guidance and application forms covering the operation of the scheme have been published today. Money will be paid to struggling businesses within a matter of days. 

The Government is currently developing Phase 2 of the scheme, which will support a larger range of eligible businesses and employees for at least the period of April 2020 – June 2020. If the disruption persists beyond June 2020, the scheme may be extended. Phase 2 is under development and will be announced later in April. The Government remain committed to providing appropriate support for businesses for the duration of the crisis. The scheme will provide support of up to 27,000 jobs at a total cost of up to £101 million. 

Information published today outlines in more detail, the business sectors included and excluded in Phase 2 of the scheme and general information on how the scheme may operate. The Government are working on approving the formal Guidance and application forms covering the operation of Phase 2 of the scheme, which will be published in the future.

Assistant Minister for Treasury and Resources, Senator Ian Gorst, said:  “I am very pleased to confirm that Phase 1 of the Government Co-Funded Payroll Scheme has been launched today for applications. When this scheme was announced only 12 days ago, Senator Farnham promised to ensure that we got financial support to businesses in greatest need as soon as possible. 

“Today, this launch achieves that aim, and eligible businesses will get money within a matter of days of making an application. In order to carefully protect our public finances, in what will be a long road to economic recovery, the Government is taking an approach of ‘economic triage’ with our support schemes.

“We have also published more detailed information today on business sectors which are included and excluded from Phase 2 of the scheme. That information should help businesses make difficult decisions and plan during this unprecedented time. We have requested that officials carry out further work to analyse the impact and the scope of the scheme, and we remain committed to keeping the scope and operation of the scheme under review, and we hear and understand the difficulties that all businesses are facing at this time.”

The Government is continuing to develop formal Guidance on the operation of Phase 2 of the payroll support scheme, which will be developed over the course of April. The scope and operation of the scheme continues to be under review, however the Government will not be announcing any further details of the scheme until Friday 10 April 2020.