THOUSANDS of Islanders struggling to pay their bills will receive an extra £20 a month in a government bid to tackle the rising price of goods in Jersey.
Social Security Minister Judy Martin said the changes would mean an extra £80 to a family of four on income support and could help to pay for weekly shops. The scheme, which is estimated to cost £2 million, begins in April and will last until the end of the year.
Making a statement in the States Chamber yesterday, Deputy Martin said: ‘I don’t think this has ever been done before.’
The temporary changes affect 11,000 people in Jersey who receive means-tested benefits, which includes 9,600 adults and children living in income-support households, and about 1,800 pensioners who do not qualify for income support, but receive help with heating, health or other costs.
Payments will also go towards those receiving the community-cost bonus, Deputy Martin said, which was set up following the introduction of GST to support Islanders who do not earn enough to pay income tax but do not qualify for income support. The extra payment will be sent automatically with no need for Islanders to apply.
The announcement comes on the day the government indicated it had no current plans to slash fuel duty amid spiralling global energy prices, despite calls from the Consumer Council. (Full story: page 4)
Deputy Martin could not directly answer a question from Senator Sam Mézec on whether Islanders would be better off in real terms with the payment once the rising cost of living was factored in, saying she would have to provide further information to the Senator. And Deputy Geoff Southern said by not linking benefits to a price index, the government was effectively ‘giving with the right hand, what the left hand had already taken’.
The £2m would be taken from the current departmental budget, according to Deputy Martin, and would not result in any extra cost to the taxpayer due to underspends and strong employment figures.
‘The Jersey economy has recovered well from the impact of the Covid pandemic and the number of people who are actively seeking work is currently at an all-time low,’ she said.
Deputy Martin said it ‘broke my heart’ to read a story in the JEP on Monday, in which Islanders have reached ‘crisis point’ – some of whom have gone days without eating – and are seeking help in growing numbers from the Salvation Army. The organisation has called for the government to engage more with charities.
Constable Andy Jehan urged the minister to remove GST from food, but Deputy Martin said she preferred to maintain the 5% status quo, which she said was ‘low and simple’. She did agree with the Constable that more needed to be done for families who did not qualify for income support.
Senator Kristina Moore also called for the minister to ‘broaden the scope’ of support. She has lodged a separate proposition calling for an increase in the community cost bonus, which is due to be debated this week.
Deputy Martin confirmed that Islanders would not have to pay the sum back, in response to a question from Deputy Mike Higgins.
