Social Security Department Comprehensive Review Savings: Transfer of Funds

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A decision made on 19 November 2010 regarding a transfer of funds as part of the Social Security Department Comprehensive Review savings

Decision Reference: MD-S-2010-0075
Decision Summary Title :	Transfer of Funds from the Social Security Department to the Housing Department	Date of Decision Summary:	16 November 2010
Decision Summary Author:	Finance Director – Social Security Department	Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written	Person Giving Oral Report:	N/A
Written Report Title :	Transfer of Funds from the Social Security Department to the Housing Department	Date of Written Report:	16 November 2010
Written Report Author:	Finance Director - Social Security Department	Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Transfer of Funds from the Social Security Department to the Housing Department as part of the Social Security Department Comprehensive Review Savings (“CSR”) in 2011.
Decision(s): The Minister agreed to make a transfer of funds from the Social Security Department to the Housing Department to compensate them for the loss of planned rental income amounting to £214,000. This rental income would have been generated in the final quarter of 2010 following the Housing Department’s annual rent increases which would normally take effect from 1st October.

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Decision Summary

Reason(s) for Decision:

The majority of recipients of Income Support's housing component are Housing Department tenants with the remaining recipients in housing trust or private sector accommodation. As a consequence, any rental increases made by the Housing Department will inevitably lead to an increase in the Social Security Department’s Income Support housing component to ensure that recipients are no worse off. Such increases in the benefit rate are available to all recipients not just those in Housing Department accommodation.

As part of the 2011 CSR, the Social Security Department identified that a saving in Income Support Costs to the States of Jersey of £1.1m could be achieved if the Housing Department did not proceed with their annual rent increase on 1st October 2010. The lost rental revenue to the Housing Department would be a saving to the Social Security Department on its housing component costs. The net saving would be generated since there would be no increase in the housing component for those recipients in the private sector accommodation.

While the Housing Department is prepared to accept lower rental receipts in 2011 as part of the CSR programme, it had made commitments based on the receipts to be received until the end of 2010. In order to achieve the longer term saving, the Social Security Department has agreed to compensate the Housing Department for the increased rental income forgone in the last quarter of 2010.

Resource Implications:

As above

Action required:

The Minister to seek approval of the Minister for Treasury and Resources in accordance with Financial Direction 3.6 – Variations to Heads of Expenditure.

Signature:

Position:

Minister

Date Signed:

Date of Decision (If different from Date Signed):