Social Security (Amendment of Law No.14) (Jersey) Regulations 202-

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A decision made on 2 October 2020

Decision Reference: MD-S-2020-0061
Decision Summary Title :	DS – Social Security (Amendment of Law No.14) (Jersey) Regulations 202-		Date of Decision Summary:	29/09/2020
Decision Summary Author:	Senior Policy Officer		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	WR – Social Security (Amendment of Law No.14) (Jersey) Regulations 202-		Date of Written Report:	29/09/2020
Written Report Author:	Senior Policy Officer		Written Report: Public or Exempt?	Public
Subject: Lodge the Draft Social Security (Amendment of Law No.14) (Jersey) Regulations 202-
Decision(s): The Minister decided to lodge au Greffe the Draft Social Security (Amendment of Law No.14) (Jersey) Regulations 202-
Reason(s) for Decision: In the approved Government Plan 2020-2023 the Government made a commitment to amend the maternity benefits described in the Social Security (Jersey) Law 1974; namely the Maternity Grant, Maternity Allowance and Adoptive Parent Grant. The Minister for Social Security wishes to replace these benefits with a modern set of benefits that recognise the role of all parents in the birth and care of a new child. It was originally hoped that these updates to the Social Security law would have been made alongside amendments to the Employment (Jersey) Law 2003 which came into force in June 2020 (via P.63/2020). However, due to the covid-19 pandemic it was not possible to maintain the original timetable, but work has recommenced, and it has now been possible to complete the work on the benefit regulations. If approved, these Regulations will conclude this work by amending the Social Security (Jersey) Law 1974 and replacing the existing maternity benefits with a new set of Parental Benefits.
Resource Implications: Financial The financing of the benefit itself was provided for by changes to Social Security contributions which became effective on 1st January 2020: The liability of employers and class two contributors, paying contributions above the Standard Earnings Limit of £53,304 were increased as follows: The Upper Earnings Limit - the maximum level of earnings that is taken into account for contribution purposes - increased from £176,232 to £250,000 The percentage rate levied on earnings above the Standard Earnings Limit (£53,304-£250,000) was increased by 0.5% from 2% to 2.5% The overall impact of these two changes was estimated to be an £3.35 million a year being received into the Social Security Fund during 2020. Manpower 1 Full Time Employee (FTE) to work in the Customer and Local Services Work and Family Team to administer the new benefit(s).
Action required: Senior Policy Officer to request the Greffier of the States to arrange for the Draft Regulations to be lodged au Greffe and to be listed for debate at the States Assembly sitting of 17th November 2020
Signature: Deputy J A Martin		Position: Minister for Social Security
Date Signed:		Date of Decision (If different from Date Signed):