Pensioners will undoubtedly suffer if GST is introduced

I’m talking about the effect of GST. Other groups such as benefit claimants are well looked after by Deputy Roffey and his committee. Pensioners lost out on a mid-year uplift which was given to benefit claimants. Why Deputy Roffey thinks ordinary pensioners don’t need help but benefit claimants do escapes me. Now we see moves to introduce a ‘look-back’ provision in the future, with the aim, no doubt, of reducing future increases in the States pension that our pensioner population receives. Naturally I will likely oppose that clever wheeze.

P&R says there will be mitigations to help the lower paid. Sounds fine in principle but it doesn’t stack up if you look under the rug and find the hidden details. For example, we are told there will be some mitigation in the social security area, some sort of allowance is proposed. Sadly, most pensioners don’t work and tinkering with social security rates passes them by.

Note to P&R – they don’t pay social security!

Over pension age it stops, so that’s as useful as a chocolate teapot, eh? That’s one area that pensioners miss out on. Another, the local equivalent of Women Against State Pension Inequality (Waspi) in the UK, which is fighting for equality. Until it was changed several years ago, the States positively encouraged married women to pay the married woman’s rate of social security. Then the States changed the rules so married women paid a higher rate when the married women’s rate was abolished. Now, some of these women, through no fault of their own, are receiving less than the full rate of pension as they have not made the required full contributions over their working life.

Due to circumstances, for example divorce, or other family reasons, none of which can be blamed on them, they are now struggling on less than the full rate of pension.

The States, rather unbelievably, has told me that in mitigation some have UK pensions or other sources of income as their reason for not addressing these issues in their tax proposals. That excuse beggars belief.

While some, and anecdotally it is a small percentage that may have that extra income, the vast majority of local single women pensioners don’t. Now if we add in the GST double whammy on top, those local ‘Waspi’ women get hit with a double blow to their income and expenditure. The States now proposes that pensioners will get an extra allowance. Great on paper and let’s assume the States continues with the allowance and uprates it on a regular basis, which is not a given, it could be taken away at the next budget. How does that promise fit with the ‘look-back’ proposals?

All pensioners will get this allowance, ‘Waspi’ women getting the reduced pension and full-rate pensioners. What is wrong with that? Well, a deeper look is required, something the GST proponents have overlooked. For example, two pensioners, living alone, one on a reduced pension and one on the full rate, let’s assume their living costs are the same. They will pay the same GST, but the reduced pension woman has less income from which GST is taken, less ability to pay as she has a reduced pension as I keep repeating. It’s not fair or equitable and the States refusing to address this matter is simply not acceptable and a stain on the States policies.

Another reason why I cannot accept GST, it’s so unfair for these women and pensioners in general.

Now, I expect Deputy Roffey to say that low-income pensioners can apply for supplementary benefit. That’s true, but why should these proud local pensioners prostrate themselves at the door of Social Security? These are resilient locals who have not relied on the state all their working lives.

There is another issue here – many pensioners having scrimped and saved over their working lives to have a small amount in the bank for emergencies, or even their own funeral. They may own their own modest home. I have seen cases where a pensioner has a small amount over the arbitrary bank account limit and their claim for assistance is summarily dismissed by Social Security

No, no, no, GST is not progressive for many people in Guernsey, especially pensioners.

The wealthy with their tax caps and unchanged income tax rates will not notice GST, and come out of this rather well. It’s our poor pensioners who will undoubtedly be suffering if GST is introduced.

There are other fairer ways of dealing with the deficit which I will address in another letter in due course.

Deputy Chris Le Tissier