22 September 2022
An extensive package of measures to address the cost-of-living crisis, which formed part of the Chief Minister’s 100 day plan has been passed. This package will put almost £15 million back into Islanders’ pockets this year and almost £42 million in 2023.
The mini-budget, which was approved unanimously by States Members incudes;
- An above inflation increase of 12% in Income Tax thresholds and allowances, including Child Allowances, Additional Allowance and Child Care Tax Relief, from 1 January 2023
- Income tax threshold for a single person will be raised from £16,550 to £18,550
- A temporary reduction of 2% in Social Security contributions from 1 October to 31
- December 2022:
- Class 1 employee paid contributions decreasing from 6% to 4%
- Class 2 self employed or unemployed paid contributions decreasing from 12.5% to 10.5%
- Doubling the Cost of Living Temporary Scheme (COLTS) from £20 to £40 per person per month, from August to December 2022
- Doubling the Community Cost Bonus (CCB) from £258.25 to £516.50 and extending eligibility to include households who paid less than £2,735 tax in 2021.
- Increasing Income Support components in January 2023 to reflect the September 2022 RPI figure
- Temporarily increasing cold weather payments to £70 a month from October 2022 to March 2023 regardless of the temperature.
Pensioners will also see an increase in the Old Age Pension rate in October 2022 by the June 2022 RPI-pensioners of 7.7%.
Chief Minister Deputy Kristina Moore said; “Delivering a mini-budget to support Islanders with the cost-of-living crisis was the number one priority of the Government’s plan for the first 100 days. The mini-budget puts money back into Islanders’ pockets and focuses support on those who are most vulnerable to the rising cost of living.
“I am grateful for the support of States Members in delivering this rapid response to assist our community. In the months ahead, we will continue to listen to Islanders and respond as necessary to future challenges and pressures.”
The Minister for Treasury and Resources, Deputy Ian Gorst, said: “This mini budget will help individuals and families with their budgets in this cost of living crisis. I am pleased with the work we have done to help people with these broad measures at this time of need in the community.”
Minister for Social Security, Deputy Elaine Millar, said: “This mini-budget will continue to put in place measures to help lower income Islanders and make sure we are providing support to those who need it the most.
“With the rising cost of living, our package of support will be available to help people as we approach the winter and provide them with the security they need during this challenging time”