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After an original proposal for an interim increase in several benefits was thrown out, the Committee for Employment & Social Security said it has listened to feedback and is now bringing back a more “targeted approach to increasing benefit rates”.
The Committee is proposing an uplift of 2.9% to be applied only to income support requirement rates, limits of weekly income, personal allowances, and maximum rent allowances – it'll cost the States £515,000, which is £3million less than their original proposals.
ESS continues to push for interim uprating measures to reduce the financial strain on low-income households, arguing that a period of exceptionally high inflation is impacting those less well off.
Pictured: The proposals would be an interim measure, while the usual uprating of benefits for 2024 will be debated later in the year.
The President of ESS, Deputy Peter Roffey, said “the proposals in this Policy Letter aim to direct assistance at low-income households to help relieve the continuing financial pressures placed on them by unusually high levels of inflation.
“Whilst we were disappointed by the outcome of the recent States debate, the Committee has taken on board feedback expressed during the States debate and has quickly worked up a new, more targeted approach.
“I hope this will be a more acceptable approach for those members of the States who were concerned that the Committee’s original proposals would benefit some people in receipt of contributory benefits who were not in financial need.”
The interim rates, if approved, would come into effect on 11 August 2023.
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