Social security rates to rise as benefits increase
SOCIAL security contribution rates could increase by 0.6% from January, the same as inflation, as the States looks to cover the costs of decisions made by the previous Assembly.
And the Committee for Employment & Social Security has warned that further increases would be recommended during this political term unless there was funding from other sources.
It means that a person earning a gross salary of £30,000 a year, will see their contributions increase by £180 to £1,980 annually or by £15 to £165 monthly.
As well as a rise in rates, the proposals, if approved by the Assembly in November, also include an above-inflation increase to the old age pension, as well as to long-term care benefits and non-contributory benefits.
However, family allowance will be reduced.
Prescription charges will be increased by 10p to £3.80 per item.
Of the proposed increase, 0.1% will be used to fund the new package of parental benefits and the remainder to improve the sustainability of the Long Term Care Insurance Fund, as previously agreed by the States.
Committee president Michelle Le Clerc said it was difficult balancing contribution rates with the benefit expectations.
