Income Support (Special Payments) (Cold Weather Payments) (Jersey) Regulations 2008 - amendment.

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A decision made (01/09/2008) regarding: Income Support (Special Payments) (Cold Weather Payments) (Jersey) Regulations 2008 - amendment.

Decision Reference: MD-S-2008-0052
Decision Summary Title :	DS - Income Support (Special Payments) (Cold Weather Payments) (Jersey) Regulations 2008 - amendment		Date of Decision Summary:	29 August 2008
Decision Summary Author:	Sue Duhamel Policy and Strategy Director		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Income Support (Special Payments) (Cold Weather Payments) (Jersey) Regulations 2008 - amendment		Date of Written Report:	29 August 2008
Written Report Author:	Sue Duhamel Policy and Strategy Director		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Income Support (Special Payments) (Cold Weather Payments) (Jersey) Regulations 2008 - amendment
Decision(s): The Minister decided to amend the Income Support (Special Payments) (Cold Weather Payments) (Jersey) Regulations 2008 to increase the value of the cold weather payment by approximately 20% and to link future cold weather payments to the fuel and light element of the Retail Price Index and accordingly requested the Law Draftsman to prepare the necessary draft legislation.
Reason(s) for Decision: The increase in cold weather payments is included as one of a number of proposals designed to mitigate the unusual rise in local fuel prices for low income households included in an amendment to the Annual Business Plan to be lodged by the Council of Ministers.
Resource Implications: There are no manpower implications. The additional cost is provided for in the budget allocation of £150,000 made in the amendment to the Business Plan.
Action required: Instruct the Law Draftsman to amend the Income Support (Special Payments) (Cold Weather Payments) (Jersey) Regulations 2008
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

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Income Support (Special Payments) (Cold Weather Payments) (Jersey) Regulations 2008 - amendment.

Winter Fuel Allowance

Income Support (Special Payments) (Cold Weather Payments) (Jersey) Regulations 2008 R&O-007-2008

The Winter Fuel Allowance regulation provides a monthly payment, in winter months, based on the temperatures in the previous month. The amount is currently linked to the adult component and as such has been increased by 3% following the introduction of GST and will be increased by a further 3.7% on 1 October as part of the overall uprating of Income Support components.

Following the major increase in fuel prices, and the availability of a separate Retail Price Index linked to fuel prices, in future the amount will be linked directly to this element of the RPI.

The amount will also be reset, with effect from 1 Jan 2009, to take into account the 26% increase in fuel prices over the last 12 months.

This will require the formula to calculate the WFA amount to be amended as follows:

The current formula is set out as

“The amount of a special payment under this Regulation shall be calculated according to the formula –

1.16 x x C

where –

T is the aggregate of the amount by which the average daily temperature of each day in that month falls below 15.5 degrees Celsius; and

C is the basic component payable under Article 5(2)(a) of the Law.”

C was set at £83.58 in January 2008.

1.16 x C = 1.16 x 83.58 = £96.95.

Increasing this value by 26% gives a new base of £122.16.

The formula will then become

£122.16 x

The reference to “C” will no longer be needed, as the WFA will, in future, be increased in line with the fuel RPI (see below)

There is no uprating mechanism in the current regulation as this is achieved through the link to the adult component.

An uprating mechanism will need to be introduced.

The GST Bonus triennial regulation uses the following wording:

“(1) For 2008 the amount of the bonus is £50.

(2) For 2009 and 2010 the amount of the bonus is £75 plus the relevant increase, if any, rounded up to the next whole pound.

(3) The relevant increase is –

(a) for 2009, an increase on £75 by the same percentage as that of the rise, if any, in the food costs figure during the 12 months starting in June 2008;

(b) for 2010, an increase on £75 by the same percentage as that of the rise, if any, in the food costs figure during the 24 months starting in June 2008.

(4) The food costs figure is the figure published by the States of Jersey Statistics Unit as the food element of the Jersey Retail Prices Index.”

The uprating for the WFA will operate on the figure of £122.16 and will be increased on an annual basis by the appropriate change in the fuel and light element of the Jersey Retail Prices Index.

The initial rate will be effective from 1 January 2009, with an adjustment in subsequent years on 1 January, based on the RPI for June of the previous year.

It is possible for fuel prices to fall as well as rise and the regulation should allow the base value to reduce as well as increase from year to year.

The part of the formula does not change from year to year as this represents the calculation which converts the daily temperatures into a factor representing the temperature for the month.

There will also need to be a rewording of the next paragraph

“(4) However, the maximum amount that may be paid under this Regulation for a cold weather month is the amount payable in respect of the basic component under Article 5(2)(a) of the Law multiplied by a factor of 1.16.”

This acts to set a maximum value on the payment. If temperatures averaged less than -2.5* for a month T would be greater than 540 and would be greater than 1.

However, the ratio is set at a maximum value of 1.

This can be achieved by referring to the maximum value of T as 540.

It is most unlikely that this will ever occur in practice.