Deputy Helyar defends pension means-testing
MEANS-testing old age pensions has been defended by the States treasury lead.
Deputy Mark Helyar said that with the States facing a complete overhaul of social security contribution rates and benefits, it made absolute sense to investigate the issue in a bid to pursue all possible savings.
‘It is something we should look at,’ he said.
‘I am sure there will be members calling for higher rates of tax for the wealthy, but why have a bureaucracy collecting more tax from the wealthy to pay them a state pension they don’t need?
‘If it is damaging the economy to raise taxes to pay people benefits they don’t need, we’re shooting ourselves in the foot.’
Listen to an extended interview with Deputy Helyar on the Guernsey Press Politics Podcast:
Deputy Helyar, who retired as a full-time advocate before entering politics, said he did not need a States pension, but was happy to continue to contribute social security, and he knew many others in a similar situation.
Asked if he was aware of the concerns raised within the community by the prospect of means-testing a contributory benefit, Deputy Helyar responded: ‘A lot of islanders should be concerned by the amount by which their tax will have to go up to pay for this.
‘That’s reality. There is cake, but we can’t have cake and eat it.
‘We’re either going to have to pay for it in tax, or save it in what we’re paying for other people.’
Deputy Helyar said that some deputies might criticise means-testing for not being able to ‘turn the dial’ on savings.
‘But we haven’t asked the question, we haven’t done the work, so let’s find out. If it won’t turn the dial, then fine, but let’s examine areas where we can save. There are options that need to be examined, though there is no one silver bullet, I completely accept that.
‘I’m talking about a much more intelligent view of what we’re spending money on, where we’re providing support, and where we can raise money.’
Deputy Helyar also flagged his concerns about people who move to the island later in life and draw on public services which largely they have not contributed to.
He suggested the possibility of the development of an insurance policy for people to buy for both their long-term care needs and medical needs, and as a former specialist insurance lawyer, said that the local insurance industry should be engaged to contribute to the development of potential products to help.
