Treasury Minister Alfred Cannan will seek Tynwald approval later this month to extend the financial support schemes for a further three months.

Mr Cannan will table a motion to extend the Manx Earnings Replacement Allowance and Salary Support Scheme for three months, at this month’s regular Tynwald sitting on May 19.

The two schemes were announced on March 22 among a package of measures to try to support the Manx economy through the effects of the coronavirus pandemic.

Both were designed to run for an initial period of 12 weeks each, forming the Isle of Man Government’s central mechanism for protecting businesses and workers.

Mr Cannan said: ’Our economy is emerging slowly and carefully and it’s clear that many businesses and workers will need some level of support for longer than the current schemes were initially planned to run.

’We are currently working on an economic recovery plan, but in the meantime it will be necessary to ensure that our primary support schemes continue to offer support to those companies and individuals who are most affected.

’This will mean extending the schemes for some sectors of our economy and it is my intention to ensure that those which continue to be adversely affected to a significant extent will be able to continue receiving support beyond the initial 12-week period.’

The Salary Support Scheme provides wage support to businesses to allow them to retain staff and resume activity as soon as possible once restrictions are lifted. The scheme pays £280 a week for each full time equivalent employee (pro-rata for part time staff) and is paid in arrears.

The MERA scheme was introduced to provide an income of £200 a week to assist individuals who were laid off, made redundant or lost their self-employed work due to the impact of measures taken to help control the spread of Covid-19. It is supporting about 2,5000 people.

Mr Cannan added: ’Support for the construction industry and associated trades will continue until the end of May to allow for a resumption of business following this unprecedented period of disruption.

’I will provide full clarity in the coming days and in the meantime Treasury will continue to work closely with colleagues in the Department of Enterprise and to target support where it is most needed.’