LONG-TERM care contributions could be increased by one percentage point from 2027 as part of “urgent action” to maintain the fund amid rising health costs.
The government – as part of the 2026 Budget – said that while there will be no immediate changes to LTC, “urgent action” is needed to maintain the fund – with the next Council of Ministers set to be tasked with increasing contributions or reducing access to the fund.
The long-term care scheme provides means-tested financial support to Islanders who need long-term care for the rest of their life, either at home or in a care home.
Every person who pays income tax pays a contribution into the long-term care fund. Currently, the maximum contribution rate is 1.5%, but most people will pay less than this.
According to this year’s Budget, care costs are “increasing rapidly” due to demographic changes and the increasing complexity of care packages.
“There has been a sharp increase in costs since the preparation of the 2025 Budget and future costs are forecast to continue to rise steeply over the next few years,” it reads.
The document explains that this can be achieved by either increasing the contributions into the fund, or by reducing the range or value of benefits provided from the fund – or both.
Ministers are also reviewing how the long-term care scheme works – including who gets benefits, how much, and how services are given.
The outcome of this review will be available to the incoming Council of Ministers after the election next year. They will then have to make a decision regarding the actions needed to increase contributions into the fund.
