Social Security (Miscellaneous Provisions No. 2) (Jersey) Order 201-

Information about the publication of Ministerial Decisions

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demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
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A decision made on 21 December 2012:

Decision Reference: MD-S-2012-0114
Decision Summary Title :	DS – Social Security (Miscellaneous Provisions No.2) (Jersey) Order 201-.		Date of Decision Summary:	21 December 2012
Decision Summary Author:	Strategy and Policy Director		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	WR - Social Security (Miscellaneous Provisions No.2) (Jersey) Order 201-.		Date of Written Report:	21 December 2012
Written Report Author:	Strategy and Policy Director		Written Report : Public or Exempt?	Public
Subject: Social Security (Miscellaneous Provisions No.2) (Jersey) Order 201-.
Decision(s): The Minister made the Social Security (Miscellaneous Provisions No.2) (Jersey) Order 201-.
Reason(s) for Decision: The States approved the Social Security (Amendment of Law No.4) (Jersey) Regulations 2012 on 6 December 2012. The regulations created a new benefit -- Home Carer's Allowance -- within the Social Security Law. The regulations identify various areas that are prescribed by order. The Social Security (Miscellaneous Provisions No.2) (Jersey) makes amendments to a number of existing Social Security orders in respect of the addition of Home Carer’s allowance to the Social Security Law.
Resource Implications: There are no manpower implications in respect of this Order. The cost of the home carer's allowance will be met by the Social Security Fund, and the cost is matched by a corresponding decrease in tax funded expenditure in respect of the Invalid Care Allowance, which the new benefit replaces.
Action required: Strategy and Policy Director to notify the Greffe and the Law Draftsman that the Order has been made and to forward the signed and sealed Order to the States Greffe, requesting the Greffier of the States to arrange for the Order to be notified to the States.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Social Security (Miscellaneous Provisions No.2) (Jersey) Order 201-

Introduction of Home Carer's Allowance

Social Security (Home Carer's Allowance) (Jersey) Order 201-
Social Security (Miscellaneous Provisions No.2) (Jersey) Order 201-

Introduction

As with all other States departments, the Social Security Department is required to make savings in 2013 as part of the agreed Comprehensive Spending Review (CSR). Unlike other departments, Social Security is responsible for three separate funding streams, all of which are used to provide benefits and services. As well as receiving a cash limit from the States, the Department collects contributions into and pays benefits out of the Social Security and Health Insurance Funds.

Proposition P.101/2012 set out an amendment to the Social Security Law to restrict future access to survivor's pension, creating net savings that will build up over a number of years to an eventual total of approximately £3.6 million per annum.

The survivor's pension is paid out of the Social Security Fund. However, the Comprehensive Spending Review requires savings in respect of tax funded budgets and P.101 also set out the transfer of responsibility for the payment of invalid care allowance from the tax funded budget to the Social Security Fund. This will transfer an annual cost of approximately £2.68 million in 2013.

The proposals within the Medium Term Financial Plan in respect of Social Security expenditure over the period 2013 to 2015 were based on these proposals and, in particular, the transfer of invalid care allowance to the Social Security Fund from January 2013.

Home Carer’s Allowance

Regardless of the savings target, the transfer of this allowance in respect of working age carers to the Social Security Fund is appropriate for a number of reasons. The value of the current invalid care allowance is already set at the same rate as the contributory benefit rate. The primary purpose of the benefit is to support working age carers who are no longer earning a wage due to their caring responsibilities and so fits well with other contributory benefits which support workers unable to work during periods of incapacity or maternity.

The role of carers is an increasingly important one in our ageing society and including the new home carer's allowance within the Social Security Law ensures that the value of the benefit will be maintained in line with other contributory benefits and that funding will be available from the ring fenced Social Security Fund. Although not directly linked, this proposal fits well with the ongoing development of the Long Term Care Benefit Law. The proposition of the Council of Ministers - “Health and social services: a new way forward” P.82/2012 - also highlights the importance of care being provided in the community and identifies a number of new areas in which carers will be supported.

P.101 was approved by the States on 6 December 2012 and the new home carer's allowance will be effective from 1 January 2013. The Invalid Care Allowance Law 1978 will be repealed, as the new benefit is established.

The two orders provide further detail in respect of a number of areas set out in the regulations.

The Social Security (Home Carer’s Allowance) (Jersey) Order provides additional detail in respect of the definition of regular and substantial care, the requirement for the carer to be present in Jersey, the earnings of the carer, the ordinary residence of the cared for person, the allocation of the allowance where 2 or more carers are caring for these same person and a relaxation of the contribution conditions in certain circumstances.

The Social Security (Miscellaneous Provisions No.2) (Jersey) makes amendments to a number of existing Social Security orders in respect of the addition of Home Carer’s allowance to the Social Security Law.

Financial and manpower considerations

There are no manpower implications in respect of these two Orders. The cost of the home carer's allowance will be met by the Social Security Fund, and the cost is matched by a corresponding decrease in tax funded expenditure in respect of the Invalid Care Allowance, which the new benefit replaces.