Roffey – means-testing States old age pension is outrageous

‘It think it’s outrageous, to be honest,’ said Deputy Roffey in the wake of Policy & Resources’ report on future taxes.

As well as putting forward a goods and services tax, the report raises the idea of means testing universal benefits, such as the States pension, long-term care in a residential or nursing home, family allowance and unemployment benefits.

Deputy Roffey took to social media to express his shock that between ESS being asked to comment on the committee’s policy letter and it being published, the report had been amended to include means testing.

He called it ‘complete madness’ and was particularly critical of the state pension being included in this.

He is set to raise the matter with his committee.

‘This is an occupational pension they have taken out with their employment,’ he said.

‘It’s an absolute state contract that if you’ve paid state contributions that you should receive a state pension.

‘I think Deputy Helyar is whistling in the wind if he thinks he’s going to change that.

‘I don’t think it’s going to get any traction.’

He likened the idea of refusing to pay wealthy people a pension to a millionaire’s home burning down and them being told by their insurance company that they were not entitled to an insurance payout because they were too rich.

In his Twitter comments Deputy Roffey said the idea was a ‘breach of promise and penalising those who save or make alternative provision’.

He said it would be a ‘pure tax. Effectively 29% income tax.

'If GST is unpopular, this will trump it.’

It was likely that ESS would discuss the matter at its next committee meeting in a few weeks and it might consider the idea of a supplementary letter of comment.

In answer to Deputy Roffey’s criticism of the last-minute addition of the means testing idea to the report, Deputy Helyar said that it had been clear throughout the process that the island’s long-term financial challenges would have to be tackled on multiple fronts.

This included looking at whether there were ways in which States’ spending could be cut beyond what could be achieved through efficiencies, alongside the role of taxation, economic growth and the population.

‘As the Policy & Resources committee progressed through the final stages of developing the tax review policy letter, it became evident that there was a need for clearer co-ordination of workstreams that could contribute positively towards long-term financial stability and more emphasis on identifying further measures which might reduce the extent to which increases in taxes might be required,’ he said.

‘The intention is to ensure that as we move forward into the next stage we are able to demonstrate to the community that all options are being considered, however unpalatable.’

The policy letter contained only examples, not recommendations or proposals ‘but an indication of the types of measures that would be examined by the P&R sub-committee’.

Deputy Helyar responds Page 2