03 October 2007
The Minister for Social Security is concerned about the worry and concern that is being unnecessarily caused to pensioners following publication of the Scrutiny Sub-Panel’s Report.
The Minister is determined to put the record straight.
The facts are that Income Support will improve the standard of living of 57% of single pensioners in rented accommodation and 55% of pensioner couples in rented accommodation currently in receipt of benefits.
Those 57% are the poorest pensioners in Jersey, on low incomes, surviving only just on part pensions. The average weekly income of this group is £138 (single) and £248 (couples).
On average, these poorest of pensioners will see their benefits increase by £38 a week.
Single pensioners in rented accommodation on pensions of £180 per week or less and with savings of up to £11,000 will be better off under Income Support.
Couple pensioners in rented accommodation on pensions of £310 per week or less (savings up to £18,000) will be better off under Income Support.
Income Support is doing the job of tackling the poverty of the poorest pensioners in our Island – tackling real need.
In order to be effective in tackling real need, the generosity of, in particular, the Housing Subsidies and DTA schemes has also been addressed.
Even those on higher incomes and savings will have their current benefit protected over a number of years on a reducing basis. No-one will see a cut in benefit at all until October 2008
Pensioners on high incomes and with significant savings will see less in the way of benefit than under the existing system, yet they are in the minority.
Pensioners in rented accommodation on higher incomes will receive Income Support but at a lesser level than at the moment - they have average weekly incomes (before benefit) of £191 (single) / £335 (couple). This is considerably more than the maximum States Old Age Pension. Their average weekly income including benefits under Income Support will be £263 (single) and £417 (couple).
Only those tenants currently receiving any benefit on very high pension incomes will not receive Income Support and on average they will have weekly income of £280 (single) / £442 (couple).
The Scrutiny Sub-Panel Report correctly points out that only those pensioners with significant savings will lose.
70% of all pensioners in rented accommodation currently receiving benefits have savings which will not be taken into account in calculating Income Support as they are below the proposed limits. These limits are more generous than existing welfare limits.
The Minister is also alarmed by reports today, alleging that the lower paid lose under Income Support. Senator Paul Routier said “Those on low incomes, do better under Income Support than if receiving existing benefits - this group typically includes the more vulnerable in our Society”.
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