11 May 2007
More details of the fundamental overhaul of Jersey’s benefits and allowances will be published in early July.
The Social Security Department has been working towards introducing the Income Support system for a decade. This has involved consulting stakeholders and carrying out research, enabling detailed analysis of how the various benefits and allowances which are currently paid in Jersey work in practice.
The States objectives in reforming the way benefits are paid in Jersey are for introducing more fairness and equity and to ensure that the funds available are given to those who need help most.
It was previously anticipated that the new scheme would start in the summer of this year and after careful consideration the Council of Ministers are now planning to introduce the new system in January 2008. Announcing the timetable today, Social Security Minister Senator Paul Routier said: ‘There’s no doubt that the introduction of Income Support will signal a change of approach for Jersey. We currently have a benefit system which is fragmented, because it grew up over the years without any overall coordination and without any single focus. I believe that the new system will be very much better. It will be coordinated by a single department – Social Security – and will have the aim of targeting support to those whose need is greatest, and promoting independence wherever possible.’
Ministers have always promised that Income Support would be in operation before GST comes in, so that the less well off will be cushioned from the effects of the tax. Now that the implementation date of April 2008 for GST has been agreed, Ministers have decided to allow more time for people to fully understand the new benefits system before bringing it in.
The detailed proposals for Income Support will be published in the week beginning 9 July. At that time, information will be available for all stakeholders and interest groups. The States will debate the proposals on 26 September. Once approved, there will be a period of full public communication, so that everyone who receives a benefit or allowance will understand fully the effect of the news scheme, before it is introduced in January.
Senator Routier said: ‘We have decided to put back the introduction until early 2008 because we realise this will be a big change, and it is important that we have plenty of time to explain to everybody involved how they will be affected. My view, which is shared by other ministers, is that we should make full use of the time available to ensure that everyone understands the new scheme.
The benefits and allowances which will be replaced by Income Support are:
Adult Disablement Allowance (ADA)Attendance Allowance (AA)Child Disablement Allowance (CDA)Childcare AllowanceEducation Maintenance AllowanceDisabled Transport Allowance (DTA)Family AllowanceHealth Insurance Exception (HIE)Home Study GrantParish WelfareRent AbatementRent RebateSchool-age Discount SchemeSubsidised Milk