Guernsey pension age rise to 70 supported

A move to increase Guernsey's pension age as part of reforms to the island's tax, pensions and benefit systems has been supported by the States.

Deputies agreed in principle to gradually increase the pension age to 70 by 2049.

The reforms, including increasing personal tax allowances, aim to tackle issues caused by an aging population.

However all the proposals approved will be voted on again by the States before they are made into law.

Deputies also agreed to set up a pension scheme in addition to the old age pension, phase out mortgage interest relief, increase personal tax allowances and limit rises in domestic property tax to 7.5% a year until 2025.

A proposal not to introduce a broad-based consumption tax, similar to GST in Jersey or VAT in the UK, was approved by a vote of 20-19.

A move to stop the transfer of tax allowances between married couples and couples with children was the only one to be rejected.

Changes to universal benefits, including prescription charges, family allowance, free TV licences and health benefit grants, were discussed but no decisions were made.