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Business support measures if lockdown is extended - grants and 100% payroll co-funding

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Friday 29 January 2021

The Policy & Resources Committee has today announced future additional business support measures to help businesses and sole traders prepare and plan for the weeks ahead.

In the event that the Bailiwick is still in lockdown on Monday 15th February, a grant scheme will be triggered with the claims process to start immediately on that day.

Reflecting the fact that the current period of lockdown may be shorter than that in 2020, the value of the grants are set at a lower level than last year.

Businesses which do not operate from commercial premises will be entitled to claim a grant of £1,000, and those which operate from commercial premises will be able to claim £2,000. This reflects the additional overhead commitments that commercial premises bring. This is subject to businesses having monthly overheads of £500 or more, as well as meeting other qualifying criteria which will be confirmed in advance of the grant scheme commencing.

In addition, the Committee also agreed that 100% payroll co-funding will be made available from Monday 1st March, subject to certain qualifying criteria, if restrictions are still in place.

The Committee had previously announced that eligible businesses will receive 80% of the minimum wage - which is £8.70 per hour - for their employees, requiring them to cover the other 20%. The introduction of 100% payroll co-funding will provide enhanced support to those businesses which are still heavily impacted by restrictions at that time. For clarity, 100% payroll support would start from the March payroll costs, which would then be claimed at the start of April.

Deputy Mark Helyar, Treasury lead for the Policy & Resources Committee said

"Since the start of this latest lockdown, we've moved quickly to provide reassurance to businesses that financial support is and will be available to those who need it. Although these latest measures refer to upcoming changes, we wanted to get the message out as soon as possible to allow time for businesses to plan ahead. We will continue to review these measures to ensure that businesses are getting the support they need."

"We have also taken the opportunity to seek feedback from industry representatives to ensure the measures are appropriate."

Eligible businesses will be able to apply for 80% payroll support from the 1st February in order to claim for the period commencing 23rd January.

The list of eligible sectors and details for businesses wanting to apply for payroll co-funding can be found at https://covid19.gov.gg/guidance/business

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