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Winter fuel allowance looks set to rise by 19%

THE winter fuel allowance looks set to be increased by 19% this year.

The Employment & Social Security Committee will ask States members to back the substantial uplift when they debate benefit rates at the beginning of November.
The Employment & Social Security Committee will ask States members to back the substantial uplift when they debate benefit rates at the beginning of November. / Supplied pic

The Employment & Social Security Committee will ask States members to back the substantial uplift when they debate benefit rates at the beginning of November.

The proposal would take the fuel allowance, which is a means-tested benefit, up to £50.48 per week, payable between the end of October this year and the end of April next year.

The committee said the figure of 19% was based on changes in the cost of fuel and light over a 12-month period ending in June 2026 and in line with uprating policies previously agreed by the States Assembly.

ESS has recommended inflation-only increases in most other non-contributory benefits, including income support, when it published its annual policy letter.

That means most rates are set to increase in January by 4.3%, equal to the most-recent annual change in prices.

Some variations were proposed to that ‘inflation-only’ policy, including for maximum rent allowances.

‘In response to the increasing number of income support customers residing in private rental properties whose rent exceeds the relevant maximum rent allowance, it is recommended that the maximum rent allowances be increased by 5.0%,’ said ESS in its policy letter.

It also wants to increase income support limits above the rate of inflation for people in ‘standard rate beds’ in care homes as part of an ongoing move to pump more money into the industry and incentivise growth to meet escalating demand.

ESS also wants deputies’ backing to freeze the current annual household income limit at which family allowance is withdrawn rather than increasing it in line with inflation.

The current limit is £125,000.

‘Doing so would reduce the real-terms value of the limit by £5,000 and would result in an estimated saving of around £200,000 compared to increasing the limit in line with inflation,’ said ESS in its policy letter.

‘This is because an estimated 3% of currently eligible households would become ineligible to receive family allowance.’

Under the committee’s proposals, total spending next year on non-contributory benefits is expected to reach £89.7m., which would be a 30% increase since 2023.

Non-contributory benefits are administered by ESS but are funded through general revenue rather than social security contributions.

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