Jersey pensioners lose Christmas bonus in finance plan

Pensioners in Jersey will lose their Christmas bonus after the government passed a controversial financial plan.

The four year medium term agenda was dubbed an "austerity budget" by unions.

It was set to cover a projected £145m shortfall over four years that came about due to lower than expected tax income.

It also allowed for an increase in funding on education, health and the capital, St Helier.

The budget included plans to cut social security allowances for pensioners, young people and single parents.

Two major changes to the original plan saw free TV licences kept for people over 75 and an extra £260,000 for education.

St Helier, education, health and the economy are the key priority areas for the States over the next four years

Budget changes

• £70m will be taken from the strategic reserve to cover short term spending requirements

• £10m reduction in the benefits budget by freezing spending at 2015 level until 2019

• Christmas bonus paid to people over 65 ended

• States to pay parish rates on all its properties by 2017

• £10m per year generated by introducing user pays charges on liquid and solid waste

• £70m saved through pay restraints, voluntary redundancies and more outsourcing

Approved changes

• Plans to scrap free TV licences for over 75s overturned with funding coming by scrapping assistants for the chief minister and treasury minister

• An extra £260,000 given to the education department, with money coming from a contingency fund set aside for emergencies

• French language teaching assistants kept on after the Education Minister agreed to keep funding them

• Deputy Montfort Tadier withdrew his call for £40,000 to be taken from the States communications unit to fund the teaching assistants

Speaking at the end of the debate, chief minister, Senator Ian Gorst said: "As far as I am concerned the amendments accepted will improve the plan throughout the course of the plan."

Jersey Unite spokesperson Nick Corbel said he was concerned by the lack of consultation over the plans.

About 1,500 people from a number of unions were involved in a protest against the financial plan on Saturday.

There were 15 amendments to the original plan with the majority being rejected by members. Some were very close though, with a vote to change the plan to just a single year losing by one vote.

The debate went on late into Thursday evening, finishing at about 20:00 BST with one member leaving in anger.