Written Report
The draft Social Security (Television Licence Benefit) (Jersey) Regulations were lodged on 5 May 2009.
The report accompanying the Regulations set out the rationale for the income bars applied to this benefit.
“The Television Licence Scheme is aimed to provide assistance to those elderly people in the community who are on a low income. Regulation 7 of the Social Security (Television Licence Benefit) (Jersey) Regulations 2006 sets out that the income bar for a single person as £12,770, and £20,720 for a couple. These figures were set by the States in 2006 and have remained unchanged since then,
Income tax thresholds in 2006 were –
- £12,300 for a single person
- £20,250 for a couple.
The income limit for the eligibility to the Scheme was based on the income at which a pensioner would pay £127 tax (the cost of a TV licence at the time). This equates to £470 above the threshold, giving the current limit of £12,770 (single) and £20,720 (couple).
Current income tax thresholds (2009) are –
- £14,110 for a single person
- £23,220 for a couple.
Bringing the income limit up to date on the same basis gives –
The cost of a TV licence in 2009 is £142.50, which is equivalent to a taxable income of £528 above the tax threshold, giving income limits of £14,638 (single) and £23,724 (couple).”
Owing to an administrative error, the value of the income limit for a couple was incorrectly given in the report as £23,724. The correct figure is £23,748, being the sum of £23,220 and £528.
A further error led to the income limits in the Regulations being quoted as the Income Tax thresholds, rather than the limits for the scheme.
The amendment replaces the original values with the correct ones, which are
Limit for single person: £14,638
Limit for couple: £23,748
There are no financial or manpower implications.