THE Housing Minister has made changes to the criteria for accessing social housing a week after successfully arguing against a rival proposal brought by his predecessor.
Deputy Sam Mézec has removed the previous £70,000 limit for maximum savings and other capital assets, meaning that all applicants via the Affordable Housing Gateway will be classified into three bands.
The new arrangement means that anyone with savings above £80,000 will be placed into band 3, the lowest priority grade, unless there are circumstances that warrant the applicant being placed in a higher grade.
At the most recent sitting of the States Assembly, former Housing Minister David Warr, who served in the role from July 2022 until January last year, proposed a scheme to raise the £70,000 limit to £200,000.
Deputy Warr said raising the cap would be a way of improving the quality of life of those described as “asset rich, cash poor”, estimating that around 1,000 Islanders owned their own home with no mortgage but remained in relatively low income. But his proposition was defeated by 30 votes to seven.
Speaking during the debate, Deputy Mézec said there was a “fatal flaw” in the method advocated by his predecessor, creating a risk that an Islander with £200,000 in assets could leapfrog someone without assets.
Although some States Members urged the minister to collaborate with Scrutiny and other States Members before finalising his own scheme, Deputy Mézec moved quickly to confirm his move within a week of the debate.
The maximum household income thresholds for the gateway have also been revised, based on the change in the Retail Price Index since the last review in September 2023.
The threshold for a single applicant with no dependents rises by around £1,200 to £40,000, with joint applicants having a maximum earnings figure of £54,000, a rise of £1,500. Higher thresholds apply to those with children or a dependent parent or grandparent.
