Income Support (Amendment No.9) (Jersey) Regulations 201-: Lodging

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A decision made on 31 May 2013:

Decision Reference: MD-S-2013-0049
Decision Summary Title :	DS – Draft Income Support (Amendment No. 9) (Jersey) Regulations 201-		Date of Decision Summary:	24 May 2013
Decision Summary Author:	Policy Principal		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	WR - Draft Income Support (Amendment No. 9) (Jersey) Regulations 201-		Date of Written Report:	24 May 2013
Written Report Author:	Policy Principal		Written Report : Public or Exempt?	Public
Subject: Draft Income Support (Amendment No. 9) (Jersey) Regulations 201-
Decision(s): The Minister decided to lodge ‘au Greffe’ the Draft Income Support (Amendment No. 9) (Jersey) Regulations 201-
Reason(s) for Decision: The Regulations set out increases to the Income Support accommodation components. In consultation with the Minister for Housing, it has been agreed that the accommodation components of Income Support will be increased by 2.15% from 7 October 2013 (the first Monday in October) to match the proposed increases in Housing Department rentals at the same time.
Resource Implications: The total cost of the increase in Income Support accommodation component rates in 2014 will be approximately £1.1 million (based on all open Income Support claims as at 30th April 2013), as allowed for in the Treasury provisions for up rating in the Medium Term Financial Plan. The changes will take place from 7 October 2013 and the increased cost of approximately £250,000 in 2013 is provided for in the current departmental cash limit. There are no manpower implications associated with the changes to Income Support component values.
Action required: Policy Principal to request the Greffier of the States to lodge ‘au Greffe’ the draft legislation and to request a States debate on the sitting commencing 16 July 2013.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Income Support (Amendment No.9) (Jersey) Regulations 201-: Lodging

Page 1

1. Introduction

Income Support legislation requires the Minister for Social Security to bring forward any proposals to changes to the rates of components of Income Support for consideration by the States Assembly. Component rates were last reviewed on 1 October 2012 (P.56 / 2012) and this proposition sets out proposals to amend the accommodation component rates from 7 October 2013.

As part of the Medium Term Financial Plan for 2013 to 2015, the Department is committed to achieving an annual saving in tax funded benefit expenditure of £3 million for 2014 onwards. A review of options to achieve these savings is currently taking place. If the outcome of the review requires changes to component rates, these will be brought to the States later in 2013.

The Housing Transformation Programme, recently approved by the States Assembly, includes changes to Housing Department and Housing Trust rentals from April 2014. The increases in rent levels experienced by some Income Support tenants from April 2014 will be matched by a parallel increase in the Income Support rental components at that time and further regulations will be drafted to reflect these changes.

2. Accommodation component increases

Components within Income Support are used to fix the maximum level of financial support available in respect of different aspects of household expenditure. The value of each component is set out in the Income Support Regulations. The proposed Income Support (Amendment No.9) Regulations increase the accommodation component rates.

In consultation with the Minister for Housing, it has been agreed that the accommodation components of Income Support will be increased by 2.15% from 7 October 2013 (the first Monday in October) to match the proposed increases in Housing Department rentals at the same time. The level of the increase has been set by reference to the March 2013 RPI value of 1.4%, with an uplift of 0.75% in line with the rental policy recently approved by the States as part of P.33 / 2012 - The reform of social housing.

The table includes details of the proposed rates for different property types and tenures.

Accommodation Components - weekly rates	Oct-12	Oct-13
Hostel	£ 78.96	£ 80.64
Bedsit/lodgings	£ 113.26	£ 115.71
One bedroom flat	£ 161.77	£ 165.27
Two bedroom flat	£ 203.49	£ 207.90
Three bedroom flat	£ 231.21	£ 236.18
Four bedroom flat	£ 245.14	£ 250.39
Five (or more) bedroom flat	£ 254.38	£ 259.84
One bedroom house	£ 183.82	£ 187.74
Two bedroom house	£ 239.40	£ 244.58
Three bedroom house	£ 267.05	£ 272.79
Four bedroom house	£ 288.96	£ 295.19
Five bedroom house	£ 314.37	£ 321.16
Six (or more) bedroom house	£ 329.42	£ 336.49
Bedsit – owner	£ 5.88	£ 6.02
One bedroom flat – owner	£ 5.88	£ 6.02
Two bedroom flat – owner	£ 5.88	£ 6.02
Three bedroom flat – owner	£ 8.33	£ 8.54
Four bedroom flat – owner	£ 11.83	£ 12.11
Five (or more) bedroom flat – owner	£ 11.83	£ 12.11
One bedroom house – owner	£ 5.88	£ 6.02
Two bedroom house – owner	£ 8.33	£ 8.54
Three bedroom house – owner	£ 11.83	£ 12.11
Four bedroom house - owner	£11.83	£12.11
Five (or more) bedroom house – owner	£ 11.83	£ 12.11

This increase in Income Support components will ensure that all Housing Department tenants and Housing Trust tenants in receipt of Income Support are fully compensated for the increase in Housing Department rentals. Private sector tenants and owner occupiers will also benefit from the rise in accommodation components.

Due to a transposition error, the component for the rental value for a six-bedroom house was entered in the (Amendment No.8) Regulations as £392.42 as opposed to the correct value of £329.42. Regulation 2 rectifies this error.

3. Financial and manpower implications

The total cost of the increase in Income Support accommodation component rates in 2014 is estimated at £1.1 million [1], and is included in the provisions for benefit uprating in the Medium Term Financial Plan.

The changes will take place from 7 October 2013 and the increased cost of approximately £250,000 in 2013 is provided for in the current departmental cash limit.

There are no additional manpower implications associated with the changes to Income Support component values.

[1] Based on all open Income Support claims as at 30th April 2013