Guernsey benefits increase proposed by committee
- Published
New increases to benefits in Guernsey have been proposed to help combat "exceptionally high" inflation.
The Committee for Employment and Social Security recommended a one-off increase of 2.9% to take effect from July.
It said it was proposing the increase due to faster rises in the cost of living that were not accounted for in the last ordinary increase.
The increase, which could cost an additional £3.5m, would need to be approved by the States.
'Extraordinary period'
Deputy Peter Roffey, the committee president, said the additional support for struggling islanders was "urgently needed" despite the pressure on public finances.
"It does mean some £3.5m of additional expenditure between now and January and we are extremely conscious of the pressure public finances are under right now," he said.
"We do need a solution to the sustainability of those public finances but in the meantime we must also recognise that this has been an extraordinary period of increased costs for those islanders who were already struggling.
"This additional support is very badly and urgently needed and we will be making that case to the States."
The committee said the last rise in benefits and allowances in January 2023 was based on inflation in June 2022 and did not reflect the cost of living situation in the second half of the year.
It said inflation levels during this period were "exceptionally high compared to previous years".
The proposed increase does not affect benefits rates in 2024.
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