Income Support (Amendment No. 2) (Jersey) Regulations 200-.

Information about the publication of Ministerial Decisions

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demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
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A decision made (02/06/2008) regarding: Income Support (Amendment No. 2) (Jersey) Regulations 200-.

Decision Reference: MD-S-2008-0031
Decision Summary Title :	Income Support (Amendment No.2) (Jersey) Regulations 200-		Date of Decision Summary:	30 May 2008
Decision Summary Author:	Sue Duhamel – Policy and Strategy Director		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Reports Inc Component Rates		Date of Written Report:	30 May 2008
Written Report Author:	Richard Bell – Chief Officer		Written Report : Public or Exempt?	Public
Subject: Income Support (Amendment No.2) (Jersey) Regulations 200-
Decision(s): 1. The Minister approved the draft Regulations and accompanying report 2. The Minister requested that the draft Regulations be lodged on 3rd June 2008 for debate on 15 July 2008.
Reason(s) for Decision: The Income Support scheme was introduced in January 2008. The Minister is obliged to review component rates at least once a year. These Regulations will increase the component rates by 3.7% with effect from 1 October 2008.
Resource Implications: There are no manpower implications. Increasing the rates by 3.7% has a full year estimated cost of £1.6 Million which will be met from within proposed cash limits.
Action required: To lodge the draft Regulations through the Greffe for debate on 15 July 2008
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Income Support (Amendment No. 2) (Jersey) Regulations 200-.

REPORT: Uprating

The Income Support legislation requires the Minister for Social Security to bring forward any proposals to changes to the rates of components of Income Support, for consideration by the States Assembly.

Social Security benefits are usually uprated annually in October to take into account either the increases in the cost of living or annual earnings, depending upon the benefit concerned.

The Council of Ministers have, in their proposals for the Business Plan 2009, allocated an increase for Income Support for the years 2009 to 2011 equivalent to the mid point of the latest forecasts of the RPI Low Income (excluding GST) and the Average Annual Earnings Indices.

The Minister accordingly proposes to increase all components of Income Support with effect from 1 October 2008 by the mid-point of the most recently available measures, being the March 2008 figure in the case of the RPI Low Income and the June 2007 figure in respect of average earnings.

The RPI Low Income is a new measure produced by the Statistics Unit to more accurately reflect the basket of goods and services typically purchased by a low income household and for the year to March 2008, the rate was 2.7%.

Income Support rates have already been uprated to fully protect those in receipt of Income Support from the full effects of the increases in prices resulting from the introduction of GST, at an annual cost of £1.75 million per annum.

The earnings index is produced once a year and given the timescales needed to lodge, debate and then implement the increased rates of Income Support, there is insufficient time to wait until the next measure is available and still increase the level of benefit in peoples’ pockets by October 2008, therefore the latest available measure in respect of June 2007 is being used, 4.7%.

The midpoint rate between these two measures is 3.7% and it is proposed that all components be increased by this amount.

FINANCIAL & MANPOWER IMPLICATIONS:

The estimated cost of these increases in 2009 is £1.6m, which is provided for in the cash limits to be proposed to the States by the Council of Ministers. The effect of increases for the 3 months to December 2008 is £400,000 which is provided for in this year’s cash limit.

There are no additional manpower implications.

Income Support (Amendment No. 2) (Jersey) Regulations 200-

REPORT

Explanatory Note

These Regulations make increases of around 3.7% to the various rates of income support set out in Schedule 1 to the Income Support (Jersey) Regulations 2007.

Income Support (Amendment No. 2) (Jersey) Regulations 200-

Made [date to be inserted]

Coming into force [date to be inserted]

THE STATES, in pursuance of Articles 5 and 18 of the Income Support (Jersey) Law 2007, have made the following Regulations –

1 Amendment of Schedule 1 to Regulations

In Schedule 1 to the Income Support (Jersey) Regulations 2007 –

(a) for paragraph 2 there shall be substituted the following paragraph –

“2 Rates for basic components

The rates payable for the basic components under Article 5(2) of the Law are –

(a)	under Article 5(2)(a) of the Law (adult rate)	£89.32
(b)	under Article 5(2)(b) of the Law (single parent rate)	£128.94
(c)	under Article 5(2)(c) of the Law (child rate)	£60.27
(d)	under Article 5(2)(d) of the Law (household rate)	£45.71.”;

(b) for paragraph 4(2) there shall be substituted the following sub-paragraph –

“(2) The rates payable under this sub-paragraph are –

(a)	in the case of a hostel	£72.59
(b)	in the case of lodgings or a bedsit	£104.16
(c)	in the case of a flat with 1 bedroom	£148.82
(d)	in the case of a flat with 2 bedrooms	£187.11
(e)	in the case of a flat with 3 bedrooms	£212.59
(f)	in the case of a flat with 4 bedrooms	£225.40
(g)	in the case of a flat with 5 or more bedrooms	£233.87
(h)	in the case of a house with 1 bedroom	£169.05
(i)	in the case of a house with 2 bedrooms	£220.08
(j)	in the case of a house with 3 bedrooms	£245.56
(k)	in the case of a house with 4 bedrooms	£265.72
(l)	in the case of a house with 5 bedrooms	£289.10
(m)	in the case of a house with 6 or more bedrooms	£302.96.”;

“(4) The rates payable under this sub-paragraph are –

(a)	in the case of a bedsit or flat with 1 or 2 bedrooms	£5.39
(b)	in the case of a flat with 3 bedrooms	£7.63
(c)	in the case of a flat with 4 or more bedrooms	£10.85
(d)	in the case of a house with 1 bedroom	£5.39
(e)	in the case of a house with 2 bedrooms	£7.63
(f)	in the case of a house with 3 or more bedrooms	£10.85.”;

(d) for paragraph 6(3) there shall be substituted the following sub-paragraph –

“(3) The rate of personal care element payable in respect of the total score calculated under sub-paragraph (2) is as follows –

(a)	for a score of at least 15 but less than 36	£21.77
(b)	for a score of at least 36 but less than 56	£89.32
(c)	for a score of at least 56 where the member of the household is not receiving appropriate residential care	£131.25
(d)	for a score of at least 56 where the member of the household is receiving residential care that is approved by the Minister	£452.90.”;

(e) for paragraph 7(3) there shall be substituted the following sub-paragraph –

“(3) The rate of mobility element of the impairment component is –

(a) £21.77; or

(b) £43.54 if the person’s average weekly earnings exceed the amount in this clause.”;

(f) for paragraph 8(2) there shall be substituted the following sub-paragraph –

“(2) The rate of clinical cost element of the impairment component is –

(a) £2.73; or

(b) if, based on the criteria set out in sub-paragraph (1)(b), the member will need at least 9 consultations with an approved medical practitioner, £5.53.”;

(g) for paragraph 10(3) there shall be substituted the following sub-paragraph –

“(3) The rates payable under this sub-paragraph are –

(a)	for a child under the age of 3 years	£5.58
(b)	for a child aged 3 years or over but under the age of 5 years	£4.37
(c)	for a child aged 5 years or over	£3.14.”;

(h) for paragraph 12 there shall be substituted the following paragraph –

“12 Rate for the carer’s component

The rate payable in respect of the carer’s component is £44.66.”.

2 Citation and commencement

(1) These Regulations may be cited as the Income Support (Amendment No. 2) (Jersey) Regulations 200-.

(2) These Regulations shall come into force on 1st October 2008.

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