The committee was unable to provide any indication of its position yesterday, despite the proposal being openly discussed for the past three weeks and reported in the media numerous times since then.
Forward Guernsey confirmed earlier this week that it would go ahead with an amendment for a 0.5% cut to social security contributions paid by employees and the self-employed next year and force a vote on it at the States meeting the week after next.
The party first raised the idea last month, in a States debate led by ESS, and said it was seriously considering an amendment more than two weeks ago.
ESS provided a brief statement yesterday when asked for its views on the amendment.
‘The committee needs to convene to discuss this matter next week,’ it said.
Forward Guernsey, which has two members on ESS, has said that reducing contribution rates would be an immediate way to ease cost-of-living pressures on thousands of working families without harming States’ general revenue.
The move would reduce rates to 7.1% instead of 7.6% for employees and to 12.1% instead of 12.6% for the self-employed, cutting the cost of contribution payments by about £500 a year for a couple both earning around the average full-time wage.
The amendment will be proposed when ESS presents the States with the legislation necessary to put the new rates into effect.
Forward Guernsey has estimated that its proposal would reduce income to the Guernsey Insurance Fund by about £7m. The fund pays the old-age pension and a handful of other contributory benefits.
Since 2009, benefits paid out of the fund have exceeded contribution income collected, but investment returns on reserves of more than £800m. have resulted in growing annual surpluses. Contribution income and investment returns have been ahead of budget this year.