Family Allowances (Jersey) Regulations 200-

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A decision made (29/09/2006) regarding Family Allowance (Jersey) Regulations 200-.

Subject:	Family Allowance (Jersey) Regulations 200-
Decision Reference:	MD-S-2006-0061		Exempt clause(s):	N/A
Type of Report: (oral or written)	Written		Person Giving Report (if oral):
Telephone or e-mail Meeting?			Report File ref:	10/4/2
Written report – Title	New Benefit Rates from October 2006 Explanatory Report of Minister for Social Security on Family Allowances (Jersey) Regulations 200-
Written report – Author (name and job title)	Tom Gales , Policy and Strategy Director
Decision(s): Approve the draft Regulations which increase the children’s allowances in the Family Allowance system from January 2007 by 2.9%, the same percentage as the increase in the cost of living for June 2006. Approve the report to accompany the Regulations.
Reason(s) for decision: Article 12 of the Family Allowance (Jersey) Law 1972 requires the rates of Family Allowance to be reviewed annually in line with the general standard of living of the island. No increase would result in a real loss of benefit for families with children.
Action required: To refer the Regulations and the Report to the States Greffe for lodging and to Treasury and Resources for information.
Signature: Senator P.F. Routier - Minister		Date of Decision: 29 September 2006

Family Allowances (Jersey) Regulations 200-

Family Allowance ( Jersey ) Regulations, 200-

Report of the Minister for Social Security

Family Allowance is an extremely important benefit being the allowance specifically targeted to low income families as a contribution to the general cost of bringing up dependant children. It is aimed at those families below the tax threshold and is assessed on the returns made to the Income Tax Department. The benefit is not, therefore, designed or structured to meet immediate need as it is based on this “historic” income. However, Family Allowance is a vital component in the current series of means tested benefits available to low income families in Jersey.

Under Article 12 of the Family Allowance (Jersey) Law, 1972, the rates of the allowance are required to be reviewed in relation to the cost of living and general standard of living of the community. The Minister is proposing an increase of 2.9 % on existing maximum rates reflecting the increase in the cost of living at June this year.

The table below gives examples of current weekly rates and proposed weekly rates for a two child family :-

Annual Income	Current Rate	Proposed Rates
6,600	112.88	116.15
8,600	93.07	95.78
10,600	69.05	71.06
12,600	45.03	46.35
14,600	21.02	21.63

Family Allowance is one of the benefits that will be incorporated into the Income Support system in June 2007. It will continue to be paid until Income Support is implemented and careful planning will need to be undertaken to ensure that there are no gaps in benefit payments between the two systems even though the income assessment will be different; historic versus current.

Financial and Manpower Statement

The Minister estimates that the cost of the Family Allowance System, including these proposals will be within the cash limit set for the year 2007 and there are no manpower implications.