Government of Jersey

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A decision made (27/08/2009) regarding: Economic Stimulus Plan: budget allocation to the Social Security Department in relation to funding an extension of 100% transitional relief during the economic downturn.

Decision Reference: MD-TR-2009-0132
Decision Summary Title:	Discretionary Fiscal Stimulus – Social Security Department Budget Allocation		Date of Decision Summary:	19 August 2009
Decision Summary Author:	Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Allocation of fiscal stimulus funding to support individuals		Date of Written Report:	19 August 2009
Written Report Author:	Interim Programme Manager, Discretionary Fiscal Stimulus		Written Report : Public or Exempt?	Public
Subject: Economic Stimulus Plan: budget allocation to the Social Security Department in relation to funding an extension of 100% transitional relief during the economic downturn.
Decision(s): The Minister approved the allocation of £1,440,000 to the Social Security Department, to be transferred to the department’s 2010 budget. He further instructed Social Security to report on spend of all stimulus monies, and project progress/performance, on a monthly basis in accordance with guidelines set by the Treasury.
Reason(s) for Decision: A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The £1,440,000 approved funding will prevent the first transitional relief down rate taking place in February 2010. As a result the current levels of transitional benefit support for certain low income households will be maintained until October 2010, meaning those households will be able to maintain their current levels of spend within the Jersey economy during the economic downturn.
Resource Implications: No resource implications other than those already approved at the States’ debate (P55/2009) on 19th May 2009.
Action required: Treasury to be informed of decision to release necessary funds to the Social Security budget.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Economic Stimulus Plan – Social Security Department Budget Allocation.

Allocation of Fiscal Stimulus Funding to Support Individuals

Report summarizing recommendations of the Fiscal Stimulus Steering Group

19 th August 2009

Background

Extension of 100% transitional relief

The Social Security Department’s bid for £1,440,000 to enable the extension of 100% transitional relief was included within the Treasury and Resources Minister’s provisional programme of fiscal stimulus initiatives by way of Ministerial Decision on 9th July 2009.

In order to secure a green light on the funding, the Social Security department was required to provide further information about the extent and timing of down rates in the form of a proposed phasing from the current date until 2014. The detailed implementation plan was to be agreed with the Treasury and the Fiscal Stimulus Steering Group (the “Steering Group”).

This information has now been provided and quality reviewed to the satisfaction of the Steering Group and the department has demonstrated that the award of additional funding will provide direct support to many lower income households during the period identified as critical for economic stimulus. The department has also evidenced that by making other changes to the further pattern of down rates, including the date at which they will take place, they are able to implement down rates for all classes of households that will not result in severe drops in benefit entitlement that claimants may find it more difficult to prepare for.

The guarantee of stimulus funding allows Social Security to delay the first reduction in transition benefit to October 2010 and, together with funds already in the department budget, will provide an additional £1.5 million to individuals receiving protected payments in 2010, and an additional £1.15 million in 2011.

Fiscal Stimulus Steering Group Recommendation

The Steering Group recommend to the Treasury and Resources Minister that £1,440,000 is allocated to Social Security’s 2010 budget to enable the extension of 100% transitional relief.