Increase proposed for pension and benefits rates

If the proposals are agreed, the increases would take effect from 6 January 2025

A rise in pension and benefit rates has been proposed in Guernsey.

The Committee for Employment and Social Security has recommended contributory benefits are increased by 4.9% and long-term care benefits by 4.5%.

Pension rates would also increase by £13.09 to a weekly sum of £280.32, an annual uplift of just over £680, to £14,576 per annum.

If agreed, the increases, which the committee said were 0.4% more than the rate of core inflation, would take effect from 6 January 2025.

If agreed, the proposals would increase the rate of the States pension and unemployment, incapacity, parental, bereavement and long-term care benefits.

The committee also recommended a continuation of the gradual increase of contribution rates for employers, employees, the self-employed and the non-employed.

This was approved in principle by the States in October 2021, with a view to making social security funds sustainable, it said.

The committee said this would be the fourth and final step in the plan to increase contribution rates for the Long-term Care Insurance Fund.

Work rehabilitation

Deputy Peter Roffey, President of the Committee for Employment and Social Security said the Supporting Occupational Health and Wellbeing initiative had already been "a success".

The new approach to work rehabilitation, focused on occupational health and early intervention, had resulted in a 120% increase in the number of people gradually returning to work after illness or injury compared with 2022 and 2023, he said.

He added the number of new people claiming long-term sickness benefits had reduced by 40% so far in 2024, which had reduced benefit costs by between £11,000 to £20,000 per week.

The committee reported it was continuing to develop detailed proposals to restructure the social security contributions system with the aim of addressing inequalities.