Covid-19 Extension of Response Emergency Support Scheme: CRESS

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A decision made on 29 June 2020

Decision Reference: MD-TR-2020-0080
Decision Summary Title:	Extension of CRESS (COVID19 Response Emergency Support Scheme)		Date of Decision Summary:	25th June 2020
Decision Summary Author:	Specialist – Business Cases		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title:	Extension of CRESS (COVID19 Response Emergency Support Scheme)		Date of Written Report:	25th June 2020
Written Report Author:	Specialist – Business Cases		Written Report : Public or Exempt?	Public
Subject: Approval of extension to the CRESS (COVID19 Response Emergency Support Scheme) to 31st August 2020.
Decision(s): The Minister approved the extension to the CRESS (COVID19 Response Emergency Support Scheme) to 31st August 2020.
Reason(s) for Decision: 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 current Procedure on Allocations from the Reserve (published as R.23/2020) sets the requirement for all allocations from contingency to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval, however it also states that ‘Where a request is made for £100,000 or less, or where the Minister is satisfied that there is an urgent need to provide funding in the public interest, an allocation may be made by the Minister on the recommendation of the Treasurer.’ The original business case requested funding for a fixed 13-week period (1st April to 30th June) however it was identified that if the scheme required to be extended a new business case would be submitted. This has been received and demonstrates that at 24th June costs to the end of June were estimated at £400,000 and based on these calculations there will be sufficient funding to be able to extend the contract for up to a further two months. The number of claimants is reducing following repatriation of some claimants and other changes in circumstances. Applications will be monitored weekly and identity checks conducted. It is anticipated that the scheme will end as travel and work restrictions are lifted. Based on current progress towards lifting restrictions it is anticipated that the scheme should close on 31 August 2020 as other options for the individuals being supported will be available by that point in time. This includes employment opportunities being available or the option to return home. Further to this update, the Treasurer recommends this extension to the Minister for approval within the original funding allocation.
Resource Implications: The extension of the Scheme is forecast to be met within the initial allocation of £710,000 made in MD-TR-2020-0034 so there are no additional resource implications arising from this decision.
Action required: The Head of Financial Governance to advise the Specialist – Business Cases and the Head of Finance Business Partnering of CLS that this decision is approved.
Signature:		Position: Deputy S J Pinel Minister for Treasury and Resources
Date Signed:

Covid-19 Extension of Response Emergency Scheme: CRESS

Treasury and Exchequer

Ministerial Decision Report

Extension of CRESS (COVID19 Response Emergency Support Scheme)

Purpose of Report

To enable the Minister to consider the recommendation to approve the extension of CRESS (COVID19 Response Emergency Support Scheme) to 31st August 2020.

Background

On 2 April, the Minister approved MD-TR-2020-0034, which allocated Reserve Funding to CLS (Customer and Local Services) to cover the CRESS (COVID-19 Response Emergency Support Scheme) to 30th June 2020.

The original business case sought, and was awarded, funding of £710,000 for the initial 13-week period (1st April to 30th June) however it was identified that if the scheme required to be extended a new business case would be submitted. This has now been received and shows that the costs for April and May were a total of £285,000 and costs are anticipated to reduce following repatriation of some of the claimants and also other changes in circumstances. Based on these numbers, it is anticipated that the scheme can be funded to 31st August within the original allocation of £710,000.

Applications will be monitored weekly and identity checks conducted. It is anticipated that the scheme will end as travel and work restrictions are lifted. Based on current progress towards lifting restrictions it is anticipated that the scheme should close on 31 August 2020 as other options for the individuals being supported will be available by that point in time. This includes employment opportunities being available or the option to return home.

Recommendation

The Minister is recommended to approve the extension of the CRESS (COVID-19 Response Emergency Support Scheme) to 31st August 2020.

Reason for Decision

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 current Procedures on Allocations from the Reserve (published as R.23/2020) sets the requirement for all allocations from contingency to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval, however it also states that ‘Where a request is made for £100,000 or less, or where the Minister is satisfied that there is an urgent need to provide funding in the public interest, an allocation may be made by the Minister on the recommendation of the Treasurer.’

The original business case identified a need for additional financial support of £710,000 for a fixed 13-week period from 1st April to 30th June. It has now been identified that there is a continuing need for the scheme to continue to 31st August 2020, however, based on the current applications, this cost of the additional 2 months of the scheme can be met from the original allocation of £710,000.

As at 24th June, costs incurred to date were £369,000 with a total forecast for the 13-week period of £400,000, average cost per month of £130,000. Based on these calculations there will be sufficient funding to be able to extend the scheme for a further 2 months, particularly as the number of claimants is currently reducing.

Further to this update, the Treasurer recommends this extension to the Minister for approval within the original funding allocation.

Resource Implications

The extension of the Scheme is forecast to be met within the initial allocation of £710,000 made in MD-TR-2020-0034 so there are no additional resource implications arising from this decision.

Report author: Specialist – Business Cases	Document date: 25 June 2020
Quality Assurance / Review: Group Director, Strategic Finance/ Head of Financial Governance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2020-0080- Extension of CRESS
MD sponsor: Treasurer of the States