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Long-term care contributions announced

24 November 2014

ITIS rates for 2015 – which are being distributed to Islanders from today – will include a  contribution to the long-term care (LTC) scheme.

The LTC scheme provides financial support to Islanders who need substantial help with daily activities such as getting out of bed and dressing. It has been in operation since July 2014 using States funding, but from 1 January 2015 all Islanders who pay income tax will also contribute towards the scheme.   The States will continue to make an annual contribution.

Islanders pay long-term care contributions

LTC contributions are included in 2015 ITIS rates which are being posted to Islanders by the Taxes Office from today. Tax payers who pay on account will have the long-term care contribution included in this payment.

While the Taxes Office is collecting contributions, all the funds will be transferred straight to Social Security, which is responsible for the long-term care fund and the scheme.

The contribution rate from January 2015 will be no more than 0.5% of gross income and from 2016 will be no more than 1%.

Strategy for addressing aging population

The Minister for Social Security, Deputy Susie Pinel, said “This is part of our strategy for addressing the challenge of an aging population. The cost of care is rising as the ageing population increases, and the LTC scheme is helping reduce the financial worry that many Islanders have about the paying for their long-term care. It enables people to be looked after in their own home, which is what most people want.

“LTC contributions will be ring fenced and will only be used to support people who need financial support for their long-term care. The number of people who need support will increase, so LTC contributions are also likely to increase over time.”

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