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Inflation busting hike in carer's allowance "financially irresponsible"

Inflation busting hike in carer's allowance

Thursday 27 October 2022

Inflation busting hike in carer's allowance "financially irresponsible"

Thursday 27 October 2022


The States' Committee which oversees allowances for carers will oppose an attempt to get them raised by up to 25% - or £23 a week.

The Committee for Employment & Social Security wants to put up the allowance by 10% in 2023 - just over £9 a week - but said yesterday that it would be "financially irresponsible" to back a proposal from Deputy Gavin St. Pier to increase it further.

Weekly carer's allowance is currently set at £91.90. The Committee wants to increase it to £101.09. Deputy Gavin St. Pier wants to increase it to £114.88 at an estimated additional cost of £500,000 a year or alternatively to £105.69 at an estimated additional cost of £166,000 a year.

The States will vote next week on the Committee's original proposal and Deputy St. Pier's amendments.

The States agreed in 2016 to review carer's allowance. "This review has not yet commenced and there is no prospect of this review starting imminently. It is not reasonable that carers should be prejudiced by the States' inability to complete the work it has itself deemed necessary," said Deputy St. Pier.

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Pictured: Deputies Gavin St. Pier and Lester Queripel will ask the States next week to back significant percentage increases in carer's allowance ahead of a review of the scheme.

The Committee discussed Deputy St. Pier's amendments when it met yesterday.

Deputy Peter Roffey, the President of the Committee, said the Committee would be happy to accept a larger budget increase for carer's allowance but could not recommend it to the States.

"Clearly, it would be perverse of the Committee to be upset if the States decided they wanted a big, centrally-funded increase in the carers’ allowance," said Deputy Roffey.

"However, the Committee cannot support Deputy St. Pier's amendments as they appear to be financially irresponsible for several reasons."

Committee for Employment & Social Security

Pictured: The Committee for Employment & Social Security wants carer's allowance to be increased by 10% but said it could not support Deputy Gavin St. Pier's amendments at next week's States' meeting to make the increase 15% or 25%.

"First, they may cost the exchequer up to an additional £500,000 at a time when we are already in a structural deficit," said Deputy Roffey.

"Second, spending on carer’s allowances is already one of the fastest growing budget headings within the Committee. This is being driven by a big increase in the number of claimants – up 15% in just the last three years.

"Third, the amendments appear to pre-judge the outcome of the forthcoming review of carer’s allowance. It is by no means certain that the review will propose a big increase in the size of the allowance.

"Indeed, the only possible way that could be afforded would be to significantly restrict the eligibility criteria for the allowance."

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Pictured: Carer’s allowance is a weekly benefit payable for anyone who cares for a person in receipt of severe disability benefit and is providing care for at least 35 hours a week.

Deputy Roffey said it was important to recognise the role of carer's allowance in Guernsey's benefits system.

"In Guernsey, the carer’s allowance is not a wage replacement scheme as it is in Jersey and some other territories," he said. 

"Instead, those who give up work in order to care in Guernsey can claim income support [the States' general means-tested benefits scheme].

"For example, in Jersey, no one can claim the allowance if they are past the States' pension age or work more than 15 hours a week. In Guernsey, there are no such restrictions.

"Which approach is better will no doubt be one of the focuses of the forthcoming review, but one thing is certain – no community could afford Jersey's level of allowances coupled with Guernsey’s broad eligibility criteria."

Deputy St. Pier's amendments will be seconded by Deputy Lester Queripel. 

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Attempt to increase weekly carer's allowance 

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