Proposal to increase pensions and benefits in Guernsey defeated

Latest inflation figures show prices are rising by 8.3% in March 2023, with food inflation at 12.4%

Proposals from Employment and Social Security (ESS) to increase benefits and pensions have been defeated.

The Policy and Resources Committee opposed the plans saying the increase needed to be more "targeted".

The States vote was tied 18-all, which means there will be no change to the current annual adjustments.

ESS President Deputy Peter Roffey said it was "not normal times" which was "why this increase is needed".

He said: "Ask anyone on a modest income what has happened to their incomes, and it shows the urgency of why this increase is needed."

Latest inflation figures show prices are rising by 8.3% in March 2023, with food inflation at 12.4%.

The increase would have cost an additional £3.5m.

'Demand for services'

Some deputies said they wanted the States to stick to its usual policy of updating pensions and benefit rates yearly, rather than through interim increases like this proposal.

Deputy John Dyke said: "I don't see at this point there is an urgency to change our usual policy of annual inflation increases.

"So for that reason, I suggest we should stick with our current annual policy and won't be voting for these well intentioned policies."

Deputy Carl Meerveld added: "I'm sorry on any logical analysis, this whilst well-intended interim increase, I cannot support it as it is and I want to stick with the policy of the States and apply an annual increase."

ESS member Deputy Steve Falla told the States why he thought the interim increase was necessary at this time.

He said: "In 2022 the Guernsey Welfare Service provided more than £250,000 worth of food to 692 households in Guernsey.

"The demand for their services increased by 51% between 2019 and 2022."

Age Concern Guernsey Chair David Inglis had said this increase was necessary because pensioners were struggling to heat their homes with the increasing cost of living.

The next uprating report is set to be debated by the States in November 2023.

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