10 July 2020
As the minister for Social Security, I have been part of the team actively identifying extra ways to further support our whole economy.
As you know, through Social Security benefits, we offer a wide range of support for Islanders and we have worked hard over the last few months to make sure that financial help is available to Islanders affected by COVID-19.
One of the new measures is a £100 payment to approximately 13,000 Islanders from low-income households. The payment will be made by the end of July and is specifically aimed at those islanders who need it most.
The proposed temporary reduction for employees Social Security contributions from 6% down to 4% will, if approved by the States Assembly, run for nine months up to June 2021 and will increase the take-home pay for over 50,000 workers and self-employed islanders across our entire community.
This will obviously have an impact on the Social Security Fund – the 2% contribution change will reduce income into the Social Security Fund by about £26 million.
We have also extended the deadline for local businesses to repay their Social Security and GST payments. This two-year deferral will help support local businesses of all sizes and will provide some much-needed breathing space as our local economy moves toward recovery.
Stimulating our economy is a key priority at the moment and I would personally like to thank all of the staff involved in developing, implementing and administering these great new initiatives – our ability to deliver them at such a pace has been excellent.
These positive changes announced today will enhance the lives of everyone across our community and I know they will go some way to ease the pressure we all find ourselves under, in the current climate.
I’d now like to hand over to the Deputy Chief Minister.