What are relocation grants and are they fair?

Etienne le Vallee said relocation grants had pushed the price of housing up for local people

The States of Guernsey is set to spend a record amount on relocation grants that help people move to the island for work.

Between January and June this year Guernsey's States spent £2,460,465 on the scheme - nearly double what it spent in all of 2018.

Some passing residents the BBC spoke to about the issue in The Bridge said they believed the scheme was driving up the price of housing for local people.

A review of the system was supposed to be completed by the end of September but it has been delayed until at least March next year - a setback described by Policy and Resources (P&R) Vice-President Gavin St Pier as "frustrating".

Last year the States of Guernsey spent £4,757,453 on relocations, a figure which has risen steadly since 2018.

In 2025 the States is on track to spend more than it did in 2024 if it continues at the same rate as in the first six months of the year.

What is a relocation grant?

A grant is offered to help prospective States employees relocate to the bailiwick following an acceptance of an employment offer.

The States said to be eligible recipients must have accepted a full-time role, qualify for a long-term employment permit and reside outside the bailiwick prior to appointment.

The grant consists of £5,000 for relocation to Guernsey, or £6,600 in Alderney, and is only paid after pre-employment checks are completed and a contract is signed.

Short-term contracts of less than a year may receive £1,400, according to the rules.

A house purchase grant is also available, which consists of £8,750 lump sum for buying a home in the bailiwick within two years of their employment starting.

Assistance for new starters at the States with their rent is also available, with a minimum qualifying rental charge of £185 per week, up to a maximum of £260 per week.

Repayment of the grant is required if employment ends within three years for employees on a permanent contract.

Relocation grants were not fair on local residents, according to Nikki Ashman

Passers-by on The Bridge spoke to the BBC about the issue.

Nikki Ashman said the system was "not fair on a lot of locals that are struggling".

After picking up his morning coffee, Josh Norman said he believed the grants were squeezing people out of the local market.

"You're pushing the rent up for locals that it makes it more difficult," he said.

"You're bringing more people over pushing rents up, pushing mortgages up for everyone that's been here all their lives and it's no wonder that everyone's leaving really."

Etienne le Vallee said the policy had "driven up the price of housing" and made it impossible for him to rent, let alone buy locally.

Recent figures from the States showed rents had risen by more than 50% in five years.

The average rental property at the end of September came in at £2,112 per month, 1.8% higher than between April and June and 2.8% more than the third quarter of 2024.

What is the impact on public services?

Figures showed 237 of the 415 grants between January and June this year were given to Health and Social Care (HSC) staff, with 95 awarded to teachers, 21 to law enforcement staff and 62 staff from other areas.

Nick Dove, from the Royal College of Nursing, said the grants were great for attracting staff and easing the cost of living but he conceded it had led to some resentment among the workforce.

"You do have a situation with rent allowances, you could have two people working side by side and one is being paid £1,000 a month more," he said.

"Obviously that isn't fair, in an ideal world you just raise everyone's wages to make the island more attractive."

Royal College of Nursing Guernsey branch chairman Nick Dove said he wanted to see a scheme that was fair for all

Teaching union representatives said any reduction in relocation grants would have a severe impact on the island's attractiveness to staff.

Wayne Bates from the NASUWT said cutting the system would "harm Guernsey".

"Guernsey is trying to recruit the best teachers from a shrinking pool," he said.

"If the States are considering reducing or cutting back on relocation allowances, I want them to think very carefully about that because it can only have a negative impact on the recruitment of essential public sector employees."

Do politicians back changes?

HSC Vice-President Aidan Matthews said the rapid rise in rents led him to campaign for changes to relocation grants at the election.

"Especially in Health and Social Care, it's become something of a dependency in order to keep the health service running," he said.

He suggested the introduction of a cap on the number of grants available to avoid having "detrimental" effect on the housing market.

"It is the sort of thing the States has done in the past," he said.

"They have done recruitment freezes or caps on recruitment.

Deputy Aidan Matthews suggested a cap in the number of grants available

Deputy St Pier said he was concerned by the rise in property prices, which he blamed in part on relocation grants.

He said he did not know why the review of the system was delayed, after it was initially scheduled to be finished in September, but he added no change would be easy.

"No doubt many people would like is to have a completely level playing field so that actually you're in a better position to support local people who are working the public service as well," he said.

"The reality of making that kind of change would be a significant increase in the public sector wage bill, just at a time when we're obviously trying to contain costs."