Guernsey's social care fund 'will run out without action'

Current funding through social security contributions is "not adequate", the UK's Government Actuary said

The Guernsey Insurance Fund will be empty by 2039 unless action is taken to increase funding, a review of social care funding has said.

Pensions, unemployment, maternity and other benefits from the States of Guernsey are paid through the fund.

Current funding through social security contributions is "not adequate", the UK's Government Actuary said.

The Committee for Employment and Social Security (ESS) said it has "no intention" to allow the depletion.

The Long Term Care Fund, a States benefit which helps the elderly secure private care, will also be empty by 2053, a second report from the actuary said.

The anticipated combined contribution rates from both employees and employers in 2022 for both schemes is expected to be 11.4%, with the reports recommending an increase of 2.8% from 2022 to secure them until 2080.

'Demographic time bomb'

The reports base their predictions off of modelling of Guernsey's ageing population and expected trends in employment and immigration.

President of ESS Peter Roffey said the States must take "remedial action", instead of "kicking the can down the road again".

He explained a decision needed to be made as to whether this extra funding would come from increasing contributions or the Committee for Health and Social Care.

However Deputy Roffey said the proposed increase might be too severe and his committee was in favour of a "gradualist approach".

"We have an ageing population, we've known for 30 years that this demographic time bomb was going to explode.

"It has already started exploding and we're going to come to terms with it," he added.