Government Co-Funded Payroll Scheme Phase 3: Approval of Guidance

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A decision made on 1 October 2020

Decision Reference: MD-TR-2020-0129
Decision Summary Title:	Approval of the guidance for the Government Co-Funded Payroll Scheme Phase 3		Date of Decision Summary:	1st October 2020
Decision Summary Author:	Head of Investment Appraisal		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title:	Approval of the guidance for the Government Co-Funded Payroll Scheme Phase 3		Date of Written Report:	1st October 2020
Written Report Author:	Head of Investment Appraisal		Written Report : Public or Exempt?	Public
Subject: Approval of the guidance for the Government Co-Funded Payroll Scheme (CFPS) Phase 3
Decision(s): The Minister approved the guidance for the Co-Funded Payroll Scheme Phase 3 as summarised in the accompanying report and appended to this decision.
Reason(s) for Decision: The Minister for Treasury and Resources approved MD-TR-2020-0100, to establish the Co-Funded Payroll Scheme Phase 3. The guidance for the Government Co-Funded Payroll Scheme Phase 3, for the application period 1st September 2020 to 31st December 2020. For the avoidance of doubt, this guidance replaces guidance for the CFPS Phase 2 published on gov.je in September 2020 for claims made in respect of 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. The guidance for the Co-Funded Payroll Scheme Phase 3 was agreed on 1st October 2020 by the Ministers for Social Security; External Relations; and Economic Development, Tourism, Sport and Culture.
Resource Implications: There are no additional resource implications arising from this decision.
Action required: The Group Director – Strategic Finance to advise the Head of Investment Appraisal when the decision has been signed. Revised guidance to be published on www.gov.je.
Signature:		Position: Deputy S J Pinel Minister for Treasury and Resources
Date Signed: 1st October 2020		Date of decision: 1st of October 2020

Government Co-Funded Payroll Scheme Phase 3: Approval of guidance

Treasury and Exchequer

Ministerial Decision Report

Approval of the guidance for the Government Co-Funded Payroll Scheme Phase 3

Purpose of Report

To enable the Minister for Treasury and Resources to approve the guidance for the Government Co-Funded Payroll Scheme (CFPS) Phase 3.

Background

The Minister for Treasury and Resources approved MD-TR-2020-0100, to establish the Co-Funded Payroll Scheme (CFPS) Phase 3. This is the third phase of the CFPS and applies to claims made in respect of the period of 1st September 2020 to 31st December 2020. A further extension until March 2021 will be proposed in the Government Plan 2021-24.

The CFPS Phase 3 guidance is appended to this decision. It mirrors the guidance in place for the CFPS Phase 2 in August with the following key changes:

Amendments to the subsidy payable under the scheme

The maximum subsidy payable in a given month changes over time and is calculated in line with the following table:

	Sep 2020	Oct 2020	Nov 2020	Dec 2020	Jan 2021	Feb 2021	March 2021
Detriment	20%	20%	20%	20%	20%	20%	20%
Subsidy	60%	60%	40%	40%	30%	30%	20%
Max. Payment	£1,200	£1,200	£800	£800	£600	£600	£400

The subsidy for January 2021 to March 2021 will only be available if the CFPS Phase 3 is agreed in the Government Plan 2021-24.

Amendment to the definition of material detriment

In line with the policy agreed in MD-TR-2020-0100, the definition of material detriment is revised to a 20% fall in turnover to avoid businesses facing an abrupt exit from the Scheme, and to recognise that this lower threshold still represents significant detriment, which could severely impact upon businesses and employment.

Insert the following paragraphs:

Where a business operates multiple locations or separate companies within a group, a claim can still be made in respect of employees working at a location or for a group company that is open even if some other locations or group companies remain closed subject to the following:

• Only staff working at a location or for a group company that is open can be claimed for, employees of those companies that are closed are not eligible other than where they have been transferred to an open location or company and would qualify under paragraphs 34 and 35 of this guidance

• Locations or companies that are closed do not count towards the wider business or group’s material detriment. The business’ material detriment calculation must only include detriment that is experienced for locations or companies that are open.

Removal of the following paragraphs:

73. COVID-19 presents a unique challenge to our community, and public health restrictions mean that the market for accommodation is not functioning as it would under normal economic conditions. The Government expects all businesses benefiting from financial assistance under the scheme to act compassionately where they provide staff accommodation.

74. Any worker in employer-provided accommodation on 19 March 2020, must continue to be given the opportunity to remain in that accommodation for the duration of the scheme, whether or not they remain in employment. Employers which fail to meet this requirement may be excluded from this scheme and other schemes.

75. This provision will not apply where there is a clear case of misconduct and appropriate procedures have been followed to dismiss an employee. Where an ex-employee begins working for another business, the provider of accommodation will be permitted to seek recovery of any reasonable incidental costs of maintaining the employee in staff accommodation from the date of the change of employment.

Other minor amendments have been made to update the references from the prior Phase 2 Scheme to the new Phase 3 Scheme and requirements.

3. Recommendation

On 1st October 2020, the Ministers for Treasury and Resources, Social Security, External Relations and Economic Development, Tourism, Sport and Culture approved the guidance for the CFPS Phase 3. This group recommended that the Minister for Treasury and Resources approve the guidance for the Co-Funded Payroll Scheme Phase 3.

4. Reason for Decision

The Minister for Treasury and Resources approved MD-TR-2020-0100, to establish the Co-Funded Payroll Scheme Phase 3. The guidance for the Government Co-Funded Payroll Scheme Phase 3 will apply for the application period 1st September 2020 to 31st December 2020. For the avoidance of doubt, this guidance replaces guidance for the CFPS Phase 2 published on gov.je in September 2020 for claims made in respect of 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.

The guidance for the Co-Funded Payroll Scheme Phase 3 was agreed on 1st October 2020 by the Ministers for Social Security; External Relations; and Economic Development, Tourism, Sport and Culture.

5. Resource Implications

There are no additional resource implications arising from this decision.

Report author : Head of Investment Appraisal	Document date 1st October 2020
Quality Assurance / Review : Group Director – Strategic Finance	File name and path L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2020-0129 - Co-Funded Payroll Scheme Phase 3 guidance\WR - Guidance for CFPS Phase 3.docx
MD sponsor: Treasurer of the States