New income cap among family allowance reforms

Wednesday 15 September 2021

Letters are being sent out to those in receipt of family allowance this week, ahead of new income limits and the redistribution of that money to subsidise dental check-ups, doctor's appointments and emergency treatment for children.

Employment & Social Security is sending out letters to families informing them of the changes, which were originally agreed by the States in August 2020.

There are two main changes which will take effect from 3 January 2022:

1. Family allowance will only be paid to people who have an annual income below £120,000. This household income limit includes the income of the person receiving family allowance, their husband or wife and/or any partner they are living with;

2. Family allowance will only be paid for each child, up to their 18th birthday.

Pictured: As a result of the changes, some people will be asked to complete an income declaration form. 

The changes to family allowance mean that children will receive a States subsidy for GP appointments, nurse consultations and Emergency Department treatment.

The redistribution of family allowance also allows the state to provide free annual dental check-ups and dental health education in schools.

Employment & Social Security President Peter Roffey has asked families to read their letters carefully to make sure they understand what the changes will mean for them, and whether they need to do anything in response.

“Family allowance is an important source of income for many households, especially those on lower incomes, and this support will continue to be available to those who need it.

“These changes do, however, mean that there is an opportunity to divert this saving from the family allowance budget for the wellbeing of all children and young people.

“Having been a signatory of the original policy letter that was debated in the States in August 2020, it’s pleasing to see these tangible steps towards making healthcare more affordable for children.”