Hundreds of islanders supported by a charity that helps those with disabilities find employment are set to be impacted by a drop in government funding, which could see waiting lists closed and clients referred elsewhere.

Staff at the Jersey Employment Trust were told yesterday afternoon that their jobs were “at risk” of redundancy after it emerged that additional government funding would not be made available this year.

The organisation is contracted by the Employment, Social Security and Housing Department to provide vocations training and employment support for islanders with disabilities and long-term health conditions. Under the terms of the agreement, the government provides £1.9 million in funding to the charity.

However, the charity has said that increases in demand and the cost of living have meant that, for each of the previous four years, a top-up grant from government has been required. Last year, this was an additional £785,000.

In a statement, the organisation said: “No final decisions have yet been made on individual roles within the organisation, and the consultation process is intended to explore all options, including ways to minimise compulsory redundancies where possible.

“Staff at Acorn Enterprises, which is a separate company under the umbrella of JET, are unaffected. JET recognises the seriousness of this situation and the concern it will cause for staff, clients and their families.

“Supporting those affected and communicating clearly and compassionately remains a priority, and all clients are in the process of being contacted over the coming days. The Trust will provide further updates as the consultation process progresses and, while that is getting underway, will not be providing further comment at this time.”

JET confirmed it was likely that it would need to refer more than half of the 550 clients it supports each year to the government to stay within the £1.9m grant.

The charity will also close its waiting list of more than 50 islanders, and pause the acceptance of any new referrals – including any school leavers this summer.

The organisation said it “continues to engage constructively” with the government following funding discussions last year.