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L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Interim Parental Payments Scheme (IPPS)

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A decision made on 24 June 2020

Decision Reference:  MD-S-2020-0040

Decision Summary Title :

Interim Parental Payments Scheme (IPPS)

Date of Decision Summary:

22/06/20

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 - IPPS Policy Guidelines

Date of Written Report:

22/06/20

Written Report Author:

Senior Policy Officer

Written Report:

Public or Exempt?

 

Public

Subject: Interim Parental Payments Scheme (IPPS)

Decision(s): The Minister for Social Security has approved the Interim Parental Payments Scheme (IPPS) which will make a lump sum payment to employers whose employees are taking paid parental leave under the upcoming changes to the Employment Law which come into force on the 28 June 2020. Payments will also be available to Class 2 individuals taking parental leave. The scheme will run from 29 June to 31 December 2020. If the new parental benefits are not available on 1 January 2021, the Minister will take a decision as to whether to extend the scheme.

Reason(s) for Decision: Following States Assembly approval of P.63/2020, new employment rights will be in force from 28 June 2020. 

 

These family friendly changes to the Employment Law, will give all new parents an entitlement to take up to 52 weeks of parental leave (including 6 weeks of paid parental leave for both parents).  

 

Currently, the contributory benefit system supports a birth mother with a weekly allowance of £222.53 per week while she is off work caring for a new baby.  The Minister is planning to extend this allowance to all parents as soon as possible.  Until then, the Minister for Social Security has decided to implement the IPPS to provide subsidy payments to employers when their staff, other than birth mothers, who are parents decide to take paid parental leave under the new Employment Law. 

 

Resource Implications: Lump sum payments will be made for the full 6 weeks at the same rate as the existing maternity allowance, making the total maximum value - £1335. On the basis that there will be approximately 450 babies born during the 6-month period from the end of June to December, the maximum cost of the scheme is estimated at £600,000. Funding for IPPS will be met from within the existing CLS contingency budget. IPPS will be administered by CLS using existing resources.

Action required: Senior Policy Officer to publish policy guidelines for the IPPS. CLS Group Director Customer Operations to administer claims in line with policy guidelines.

Signature:

 

 

Position:

Minister for Social Security

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

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