Guernsey Press

ESS wants benefit limit raised to tackle poverty

A WARNING has been given that 224 families are living on an income which represents an ‘intolerable level of poverty’.

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(Picture by Adrian Miller, 22496840)

Employment & Social Security is proposing increasing the benefit limitation, a theoretical maximum of income support a household can receive, from £670 per week to £750 to reduce that number to 109.

Other proposals in its annual uprating reports, released yesterday, include increasing the full rate of the old age pension by £5.09 to £217.36 per week, while income support rates will increase above inflation to counter the impact of the new waste charges, if the States agrees.

‘The impact of the benefit limitation is a serious concern and the closure of the rent rebate scheme means that it can no longer be ignored,’ said ESS president Michelle Le Clerc.

‘224 families, including 721 children, are currently affected. The benefit limitation must be increased or these children will continue to live in poverty, this year’s increase will mitigate the effect but not remove it.

‘That is why the committee is proposing a real terms increase this year and will bring the matter to the States again early next year to seek a long-term solution.’

For the most part, benefit rates are proposed to increase by 2.4%, the annual rate of inflation measured by RPIX for the year to June 2018.

‘This year’s increase means that pensions and other benefits will keep in line with the rising cost of living.’

Income support was introduced in July to replace supplementary benefit and rent rebate.

This year it is proposed that the income support rates increase above inflation by between 2.9% and 4.1% to account for the costs of the new household waste charges due to be introduced in early 2019.

Disposal of a black bag is due to cost £2.50, the proposed rates allow for a half bag per week for the householder and an additional quarter bag per week for every additional member of the householder.

Deputy Le Clerc said: ‘Including an allowance for waste charges in the Income Support rates means that those with a low income will not be pushed further into poverty when the charges are introduced in early 2019.

If trends since income support was launched continue, it is expected that expenditure will be around £570,000 less than originally forecast for the half year to the end of 2018 and around £1.2m less in 2019.

The introduction of household waste charges is estimated to cost £445,000.

There were approximately 300 fewer claims under the new than were expected.