Pay-roll support to be recovered if businesses make a profit in 2021

Wednesday 27 January 2021

The payroll co-funding scheme has been reinstated to support businesses that cannot work due to the current lockdown.

However, the purse strings are much tighter this time round and extra caveats have been raised to make sure public money only goes where it’s needed.

We know that the financial toll of the pandemic in 2020 could be more than £120 million and based on the previous lockdown, an estimated £2.5 million will be paid out each week in support.

Pictured: The announcement was made during a media briefing hosted by the Civil Contingencies Authority.

Eligible businesses will be able to apply for support from 1 February, backdated to 23 January. It’ll once again allow businesses to take 80% of the minimum wage, to be topped up by the employer.

Employers will be able to claim for themselves and their employees for a maximum of 42 hours a week.

However, businesses who have sufficient resources to cope are being asked to not claim support if they don’t need it. A clause has also been included to enable ‘sums paid to businesses who find they ultimately make a profit this year to be recovered’.

Pictured: Some jobs cannot be done from home, are not considered essential, and the restrictions have therefore put hundreds of people out of work.

A £250,000 hardship fund has also been established to support people who are struggling but are not eligible for benefit support.

“We know how difficult this period will be for some businesses,” said Treasury Lead for Policy and Resources, Deputy Mark Helyar, “even if many sectors have had a good trading period in the last six months.”

“At the same time we’re saying to businesses that bounced back from the previous lockdown, and expect to do so again this time, to think hard about whether they really need support through this scheme before making a claim.” 

More information can be found on eligible businesses online. You can also email hardship@gov.gg or call 732516.