Social Security (Miscellaneous Provisions) (Jersey) Order 201-

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 30 September 2011 regarding:

Decision Reference: MD-S-2011 - 0074
Decision Summary Title :	DS – Make Order amending Social Security Orders		Date of Decision Summary:	30 September 2011
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 - Make Order amending Social Security Orders		Date of Written Report:	30 September 2011
Written Report Author:	Policy Principal		Written Report : Public or Exempt?	Public
Subject: Social Security (Miscellaneous Provisions) (Jersey) Order 201-.
Decision(s): The Minister made the Social Security (Miscellaneous Provisions) (Jersey) Order 201-.
Reason(s) for Decision: Amendments to various Social Security Orders made under the Social Security (Jersey) Law 1974 are required from 1 October 2011 to support and reflect the changes to primary legislation that will introduce contributions above the current earnings limit from January 2012. As part of the agreed Fiscal Strategy, a new contribution rate of 2% will be levied on employers and Class 2 contributors in respect of earnings above the current earnings ceiling and up to £150,000 per annum. The Minister for Social Security is responsible for bringing forward the necessary amendments to the Social Security legislation to provide for contributions above the current earnings limit from January 2012.
Resource Implications: There are no financial or manpower implications in respect of this order. The impact of the increased contributions will be a reduction in the States Grant of approximately £7 million in 2012. The Social Security Fund will meet the cost of the required increase in staffing of up to 5FTE for the administration of class 2 contributors and other administration costs.
Action required: Policy Principal to notify the Greffier of the States and the Law Draftsman that the Order has been made so that it may be notified to the States, and forward the signed and sealed Order immediately to the States Greffe for publication and archiving.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Social Security (Miscellaneous Provisions) (Jersey) Order 201-

Background

The Minister for Social Security is responsible for bringing forward amendments to Social Security legislation to provide for contributions above the current earnings limit from January 2012. The States intention is to create a corresponding reduction in the States cost of funding supplementation in accordance with the aims of the Fiscal Strategy Review.

On 20 July 2011, the States adopted draft Social Security (Amendment of Law No. 1) (Jersey) Regulations 2011 that would make the required changes to the primary legislation. A number of those changes will take effect from 1 October 2011 to enable the States decision to apply from 1 January 2012. Further detail of the proposals is included in the Proposition (P.110/2011).

Summary of proposals –

An additional Social Security contribution rate of 2% on earnings above the current earnings limit for employers and the self-employed.
A new upper earnings limit, to be established at £150,000.
A contribution liability in respect of individuals with low earnings, but total income above the current earnings limit, at the proposed 2% rate on all income between the current earnings limit and £150,000
New rules allowing new self-employed contributors to be assessed on the basis of estimates of actual earnings for up to 3 years.

The Order

The main purpose of the Social Security (Miscellaneous Provisions) (Jersey) Order 201- is to amend four Orders and revoke one Order that are made under the Social Security (Jersey) Law 1974 to provide consistency in the terminology and structure of the legislation from 1 October 2011.

Most of the changes are consequential upon the elements of the Social Security (Amendment of Law No. 1) (Jersey) Regulations 2011 that will also come into force on 1 October 2011. Further amendments to Orders will be prepared to give effect to the changes that are required from 1 January 2012.

Resource Implications

There are no financial or manpower implications. The net impact of the increased contributions will be a reduction in the States Grant of approximately £6 million in 2012.