The amendment gave the States the opportunity to do something ‘simple, yet crucial,’ said Deputy Ozanne. It would help people who were struggling with the cost-of-living crisis to afford the ‘everyday essentials’, she said.
The goal was to set the rate of this new payment at £210 a year for a single person and £353 for a couple.
Employment & Social Security member Tom Rylatt was one of several members who were concerned that the proposal would be compensating households for a tax they were not yet paying, since the cost relief payment was tied directly to GST, and it would lead to up to £1m. in extra annual expenditure.
His comments were echoed by Andy Sloan, who labelled it ‘poor economics’; Sarah Hansmann Rouxel, who said that there were better ways to tackle the cost-of-living and those should not wait until GST came in; and David Dorrity, who said it was troubling to think that this could come in next September, some 27 months ahead of GST.
ESS president Tina Bury said that work on the scheme was already under way as part of the progress towards the tax reforms coming in. It would be a big challenge to bring it in as early as next year.
On behalf of Policy & Resources, Charles Parkinson said that although the amendment did not impact on the Budget, it would create an expectation that would set the course for future increases in benefits. It was well-meaning but this was not the right way to go about helping islanders.
The amendment was lost by 27 votes to 11 with one abstention.
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