Written report: Income Support (General Provisions) (Amendment No.11) Order 201-
Background
Changes to the Income Support General Provisions Order are required in order to increase the disregard in respect of pension income available to claimants aged 65 and above, in line with the uprating of the Jersey old-age pension.
In addition, it is necessary to update the wording of the Order following the coming into force of the Control of Housing and Work (Residential and Employment Status) (Jersey) Regulations 2013. The existing IS GPO refers to the old Housing (General Provisions) (Jersey) Regulations 1970 and needs to be updated to refer to the legislation now in force.
Increase in pension disregard - Schedule 2
The weekly pension rate will increase from £189.84 to £193.48 on October 1st; the dependency pension rate will increase from £125.30 to £127.75. Accordingly, Article 5 (Percentage of income to be disregarded) is revised in order to increase the pensions disregards as from that date.
In Schedule 2, paragraph 5(f) the words:
(f) 100% of the first £47.67 of any income derived from a pension or annuity of one person in the household aged 65 years or over;
are replaced with:
(f) 100% of the first £51.31 of any income derived from a pension or annuity of one person in the household aged 65 years or over;
In Schedule 2, paragraph 5(g) the words:
(g) 100% of the first £30.73 of any income derived from a pension or annuity of any other person in the household aged 65 years or over;
are replaced with:
(g) 100% of the first £33.18 of any income derived from a pension or annuity of any other person in the household aged 65 years or over;
Control of Housing and Work Law
Part 2 Article 2(3)((c)(ii) of the GPO accepts that the Income Support test of residency is passed when “the person is a child of a person who falls within any sub-paragraph of Regulation 1(1)(a) to (h) of the Housing (General Provisions) (Jersey) Regulations 1970”
This is replaced with the words “the person is a child of a person who falls within Regulation 2(1)(a), (b), (c), (d) or (f) of the Control of Housing and Work (Residential and Employment Status) (Jersey) Regulations 2013”
The decision was taken to exclude 2(1)(e) as this is the equivalent of the old Regulation 1(1)(k) provision – residency awarded on social or economic grounds, or in the best interests of the community.
Financial and manpower considerations
There are no manpower implications for these changes. The cost of increasing the pension disregard is included in the Income Support cash limit. This represents a cost of approximately £17,000 from Oct-Dec this year; a £70,000 full year effect.